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NVIDIA Crypto Case Lets Delaware Top Court Clarify Records Rules

July 19, 2022, 7:15 PM

Investors demanding documents from Delaware corporations can rely on hearsay to establish that their records requests have a proper purpose, so long as they don’t engage in “gamesmanship” that might disadvantage the company, the state’s top court ruled Tuesday.

The justices nevertheless partly overturned a ruling in favor of NVIDIA Corp. investors who sought files from the company to probe concerns that its leaders made insider sales at inflated prices while lying about pent-up demand for graphics cards used in gaming and cryptocurrency mining.

Writing for the state’s Supreme Court, Justice Tamika Montgomery Reeves said it was well-settled that shareholders ...