Beazer Homes Wants Out Of Derivative Suit

Law360 (March 26, 2020, 4:00 PM EDT) -- Construction company Beazer Homes USA Inc. and its board of directors are urging a Georgia federal judge to toss a derivative action over their alleged inflation of land holdings' value, arguing that shareholders haven’t shown that bringing their concerns to the board before filing suit would have been pointless.

Beyond failing to establish demand futility — a requirement of stockholder derivative suits — the investors didn't provide proof that the directors breached their fiduciary duties or that they knew of any alleged misstatements about the company's California land holdings, Beazer asserted in its dismissal bid Wednesday.

"Their 70-page complaint is devoid of...

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