Pfizer Defeats Stockholder Demand to Inspect Records

Skadden successfully represented Pfizer Inc. in litigation before the Delaware Court of Chancery in connection with a stockholder’s demand for Pfizer’s books and records pursuant to 8 Del. C. § 220. The plaintiff purported to investigate possible mismanagement relating to Pfizer’s failure to calculate and disclose a deferred tax liability. After a one-day trial and post-trial argument, the court denied the plaintiff’s demand. On August 31, 2016, the court concluded that the plaintiff did not state a proper purpose to inspect the books and records because it showed no credible basis to infer mismanagement or wrongdoing by the Pfizer board.