Question: VeriFone Holdings Inc a Delaware corporation with its principal place
VeriFone Holdings, Inc., a Delaware corporation with its principal place of business in San Jose, California, designs, markets, and services electronic payment transaction systems. In 2006, VeriFone acquired Lipman Electronic Engineering Ltd. In 2007, VeriFone publicly announced that it would restate its reported earnings for the prior three fiscal quarters. Earnings had been materially overstated due to accounting and valuation errors made while Lipman's inventory systems were being integrated with VeriFone's. After that restatement announcement, VeriFone's stock price dropped over 45 percent. The next day, Charles King, a VeriFone shareholder filed a derivative action on behalf of VeriFone against certain of its officers and board of directors, asserting various federal securities fraud claims. A few months later, King demanded that VeriFone permit him to inspect the company's books and records, including VeriFone's Audit Committee Report, which contained the results of an internal investigation of VeriFone's accounting and financial controls conducted after the 2007 restatement announcement. VeriFone refused to grant to King access to the Audit Report on the grounds he lacked a proper purpose under Delaware law, because he had previously elected to bring a derivative action. Was VeriFone correct?
Answer to relevant QuestionsFor 22 consecutive years, Marston Corporation, a steel producer, has paid a quarterly dividend to its common shareholders. The annual dividend amount has ranged from 1 percent to 4 percent of the market price of Marston's ...Sutter Ranch Corporation, an Oklahoma farming and ranching family corporation, had a provision in its articles of incorporation that provided the corporation could take action to dissolve only with the approval of 75 percent ...Commonwealth Edison Co. registered 3 million common shares with the SEC and sold the shares for about $28 per share. The price of the purchasers' stock dropped to $21 when the Atomic Safety and Licensing Board denied ComEd's ...First City Financial Corp., a Canadian company controlled by the Belzberg family, was engaged in the business of investing in publicly held American corporations. Marc Belzberg identified Ashland Oil Company as a potential ...Norman Cross was the independent auditor for Home-Stakes Production Company, a company that offered investors interests in oil and gas drilling programs. The programs offered investors both income and tax deductions. Cross ...
Post your question