• Flimsy Allegations of Corporate Misconduct Fail to Support a Books and Records Inspection
  • October 25, 2012 | Authors: Steven M. Haas; Gary E. Thompson
  • Law Firm: Hunton & Williams LLP - Richmond Office
  • In Louisiana Municipal Police Employees’ Retirement System v. Lennar Corp., C.A. No. 7314-VCG (Del. Ch. Oct. 5, 2012), the Delaware Court of Chancery denied a stockholder’s request to inspect a corporation’s books and records. The stockholder was purporting to investigate alleged non-compliance with the Fair Labor Standards Act (“FLSA”). As evidence of the alleged wrongdoing, the stockholder cited two articles in the Wall Street Journal reporting that the federal government was investigating labor practices at several large home-building companies, including Lennar Corporation. The stockholder also pointed to eight lawsuits filed against Lennar Corporation between 2007 and 2009 that alleged FLSA violations, all of which were settled without any admission of liability.