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Seinfeld v. Verizon Communications, Inc.
Delaware Supreme Court
909 A.2d 117 (Del. 2006)
Frank D. Seinfeld (plaintiff) is a beneficial owner of stock in Verizon Communications, Inc. (Verizon) (defendant). Seinfeld sued in the Court of Chancery to compel Verizon to allow inspection of books and records on the basis of possible corporate mismanagement and waste stemming from the compensation packages of three executives. Seinfeld could provide no evidence of any wrongdoing. The court concluded that Seinfeld had not met his burden of showing a proper purpose for demanding inspection and granted summary judgment in favor of Verizon. Seinfeld appealed to the Delaware Supreme Court.
Rule of Law
Holding and Reasoning (Holland, J.)
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