"There have been hundreds of Delaware lawsuits to inspect company books says Ted Kittila, an attorney with Greenhill Law Group. Most requests are settled before a suit is filed, he says."
So, for the cases which went to trial, were the companies held accountable, or were they able to skirt the law somehow? I'm curious whether employees who brought the suits were able to claim damages if the value of their shares changed materially in the interim where the company refused to release the financial information which the shareholder was legally allowed to see. The shareholder could claim that they would have sold if they were given appropriate information which they were illegally denied? Thoughts?
Damages would only apply if the employee had the right to sell the shares, but did not have access to the accounts. If the company only withheld the accounts during the time when insiders were prohibited from selling, then there would be no decision for the employee to make.
"There have been hundreds of Delaware lawsuits to inspect company books says Ted Kittila, an attorney with Greenhill Law Group. Most requests are settled before a suit is filed, he says."
So, for the cases which went to trial, were the companies held accountable, or were they able to skirt the law somehow? I'm curious whether employees who brought the suits were able to claim damages if the value of their shares changed materially in the interim where the company refused to release the financial information which the shareholder was legally allowed to see. The shareholder could claim that they would have sold if they were given appropriate information which they were illegally denied? Thoughts?