In re: John Q. Hammons Hotels, Inc. Shareholder Litigation, Del. Ch., No. 758-CC (March 25, 2009), read letter decision here.
This Chancery Court ruling granted a motion to compel pursuant to Rule 26(b)(1) for post-merger financial data. This case involved a shareholder class action arising out of a merger transaction. The court described the very broad scope of discovery allowable under Rule 26(b)(1) that does not require that discoverable data to be admissible at trial but merely that it is “reasonably calculated to lead to the discovery of admissible evidence.” Moreover, the court reasoned that post-merger information may also be relevant in a breach of fiduciary duty action which may, ultimately, justify a rescissory damages remedy. [See footnote 4.]