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Stockholder Discovery Rights: Nevada Vs. Delaware

Law360, New York ( February 17, 2016, 1:47 PM EST) -- Prelitigation discovery is a novelty in the law. For example, in a contract dispute, a potential plaintiff cannot demand that the other party produce documents for use in evaluating and designing the plaintiff's claims. A stockholder who is considering suing the directors or officers of a corporation, however, can, in certain circumstances, engage in prelitigation discovery. This article compares Nevada's clear and easily applied statutory stockholder discovery rights with the broadly worded Delaware statute that a recent Chancery Court interpretation expanded further....

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