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When Demanding Inspection, Don't Overlook The Demand

When Demanding Inspection, Don't Overlook The Demand
Thursday, May 3, 2018

The wheels of justice turn slowly.  Two years ago, I wrote about Judge Robert C. Jones's ruling in Weinfeld v. Minor, 2016 U.S. Dist. LEXIS 30117 (D. Nev. Mar. 8, 2016).  In that ruling, Judge Jones tackled the question "whether a judgment in an action by a corporation's stockholders suing derivatively on behalf of the corporation is binding under the rules of res judicata in a subsequent action by other stockholders suing derivatively on behalf of the corporation?" He concluded that under Nevada law, the prior lawsuit did not bar a subsequent derivative suit because the plaintiffs in the current suit were "neither parties nor privies to the previous action."

Now, two years hence, Judge Jones has issued a ruling on the parties' motions for summary judgment.   Weinfeld v. Minor, 2018 U.S. Dist. LEXIS 51943.  Although his ruling addresses a number of different issues, I will for today focus only on his decision with respect to the plaintiffs' stockholder inspection claim

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