Ropes & Gray Attorneys Win Complete Trial Victory for 5i Sciences in Delaware Chancery Court
A cross-office Ropes & Gray team prevailed in a complete victory on behalf of client 5i Sciences, Inc., a San Diego-based medical device company, at a bench trial on November 23 before Chancellor William Chandler III of the Delaware Chancery Court. The Ropes & Gray trial team was led by New York litigation partner Eva Ciko Carman, and San Francisco litigation associates Rocky Tsai and Sarah Zenewicz.
The issue at trial was whether a director of 5i, Craig Gunther, was entitled pursuant to Delaware General Corporation Law section 220(d) to inspect requested books and records of the company. Once a demand for books and records is made by the director and refused by the corporation, a prima facie showing of entitlement to the documents has been made, and the burden of proof shifts to the corporation to establish that the inspection the director seeks is for an "improper purpose." Ruling from the bench, Chancellor Chandler denied Gunther's Section 220(d) requests in their entirety.