Universal Health Services Inc. may cite any documents produced in a books-and-records action to support a motion to dismiss expected derivative litigation over the company’s alleged practice of committing patients to mental institutions against their will, the Delaware Court of Chancery ruled on Thursday.
Vice Chancellor Sam Glasscock III said the King of Prussia, Pennsylvania-based hospital management company could adopt a so-called incorporation provision over the objections of a UHS stockholder who argued the measure would give the company an unfair advantage in defending derivative claims.
