Delaware Supreme Court Affirms Books And Records Demand May Rely On Post-Demand Evidence And Sufficiently Reliable Hearsay To Establish A Credible Basis

On March 25, 2026, the Delaware Supreme Court, in a divided en banc opinion, affirmed a Court of Chancery order to comply with a Section 220 demand based on a petition that included post-demand evidence and hearsay. Paramount Global v. Rhode Island, No. 2024-0457 (Del. Mar. 25, 2026). The Court agreed that evidence arising after a books and records demand can be used to establish a credible basis “under exceptional circumstances” and that “sufficiently reliable hearsay” evidence is admissible... By: A&O Shearman