A stockholder of a drilling company that admitted to FCPA violations has no right to know the names of the executives and the outside counsel that facilitated the bribery scheme, the Delaware Court of Chancery has ruled.
Vice Chancellor John W. Noble said stockholder Fuchs Family Trust was specific enough in its inspection demand on Parker Drilling Co. But the judge still found the request was not supported by Fuchs’ two stated intended uses of the information—to make a demand on Parker’s board of directors to take further action against the wrongdoers and to potentially file a shareholder derivative action.
