Facebook Nixes Plan for New Stock Class Ahead of Court Fight
Legal News
Mark Zuckerberg said Friday that Facebook is withdrawing plans to create a new class of stock that would have let him keep tight reins on the social media company even as he sold down his stake to fund his philanthropy.
Zuckerberg had said in April 2016 that the plan for the new shares would let him fund his philanthropy goals while keeping control of Facebook. But shareholders sued, arguing the move would give an unfair economic advantage to the company's founder.
A class-action trial on the matter was due to start next week in Delaware but was called off with Zuckerberg's announcement. He had been slated to testify during the trial.
The billionaire CEO said in a Facebook post that because the value of Facebook's stock has grown, he can fully fund the philanthropy while still keeping voting control of the company for "20 years or more," making the stock-reclassification plan unnecessary.
Zuckerberg and his wife, Priscilla Chan, have committed to donating 99 percent of their wealth in their lifetimes. They plan to accelerate their philanthropic work and sell more Facebook shares, sooner, he said Friday.
A lawyer representing Facebook shareholders in a lawsuit against the company deemed it a win for clients.
"We're thrilled that Facebook has dropped the reclassification," attorney Stuart Grant said in a statement. "Today's move is a total victory for stockholders."
Related listings
-
Court: No right to copy court reporter’s recordings
Trial Coverage 10/30/2017Georgia’s highest court says the makers of a popular podcast series do not have the right to copy audio recordings made during a murder trial by a court reporter.The second season of the “Undisclosed” podcast featured the case of Jo...
-
Illinois to require veterans courts across the state in 2018
Legal Events 10/30/2017A law passed last year requires every judicial circuit in Illinois to have a veterans treatment court starting Jan. 1.The courts allow veterans who were honorably discharged to plead guilty to a crime in exchange for a probation sentence, The Chicago...
-
Indonesia court upholds seizure of illegal fishing vessel
Legal Solutions 10/29/2017Indonesia says it has won a two-year court battle that confirms the legality of the government's seizure of a Thai vessel linked to human trafficking and illegal fishing in Indonesian waters.Minister of Fisheries and Maritime Affairs Susi Pudjiastuti...
Victorville CA DUI Lawyers - Drunk Driving Defense Attorney
The outcome of a Victorville CA DUI defense will have a long-term effect on anyone’s life, making the decision to receive legal representation an easy one. The fact is, most people accused of a DUI are first offenders with no criminal background. Whether this is your first run in with the law or you have had previous convictions, you are in need of a DUI defense attorney.
If you fail a sobriety test or have a blood alcohol level above 0.8%, you are considered to be driving under the influence in which you will be arrested. During this time you will be read your Miranda rights and it is crucial to exercise your right to remain silent. As they say, “anything you say can and will be held against you in court.” The courtroom takes no mercy on drunk drivers and any statement you make during your arrest will only damage your case.