Wolst v. Monster Beverage Corp.

Plaintiff-individual, who owned common stock of Defendant-corporation, sent a letter to Defendant seeking to inspect certain of Defendant’s books and records pursuant to 8 Del. C. 220. Plaintiff’s ultimate goal in pursuing her books and records request was to determine whether there was a basis to bring a derivative suit based on wrongs alleged in a previous derivative action. In defense to the request Defendant alleged that Plaintiff’s contemplated derivative action would be time-barred. The Court of Chancery entered judgment in favor of Defendant, holding that because Plaintiff’s contemplated derivative action would be time-barred and because no other purpose had been identified, Plaintiff failed to prove a proper purpose for the books and records inspection, which was an essential element of her case under section 220. View "Wolst v. Monster Beverage Corp." on Justia Law