Archive:April 20, 2019

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INSPECTION RIGHTS ARE NOT GRANTED FOR FISHING EXPEDITIONS

INSPECTION RIGHTS ARE NOT GRANTED FOR FISHING EXPEDITIONS

By Scott E. Waxman and Annamarie C. Larson

In David A. Hoeller v. Tempur Sealy International, Inc., C.A. No. 2018-0336-JRS (Del. Ch. February 12, 2019), the Delaware Court of Chancery denied a shareholder’s request to inspect the Company’s books and records, because he failed to provide a credible basis to suspect mismanagement or wrongdoing. 

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