Security First Corp. v. U.S. Die Casting & Development Co.

VEASEY, Chief Justice.

In this appeal we hold that a stockholder may demonstrate a proper demand for the production of corporate books and records upon a showing, by the preponderance of the evidence, that there exists a credible basis to find probable corporate wrongdoing. The stockholder need not actually prove the wrongdoing itself by a preponderance of the evidence. Therefore, the trial judge’s determination of that credible basis after considering the totality of the evidence is entitled to considerable deference.

The Section 220 demand for books and records under the Delaware General…