Beazer Homes Wins Dismissal of Derivative Action

Skadden secured the dismissal of a consolidated derivative action filed in the Northern District of Georgia by two shareholders against current and former Beazer Homes USA Inc. directors and officers. Beazer reduced prices on several of its long-held land assets in May 2019, triggering an asset impairment of $147 million. Thereafter, shareholder groups brought a securities class action and a series of derivative actions alleging that the company's board issued misleading disclosures that did not accurately state the value of those assets. After Skadden convinced the securities class action plaintiffs to voluntarily dismiss, Beazer was granted the dismissal of the consolidated derivative action without prejudice.