Facebook Beats Derivative Suit Over Board Diversity, For Now

By Hannah Albarazi (March 22, 2021, 7:55 PM EDT) -- A California federal magistrate judge on Friday granted Facebook's bid to ax a shareholder derivative action alleging the technology giant's lack of diversity caused its stock price to fall, saying the shareholder offers only conclusory allegations that fail to establish causation while presenting inaccurate facts about the board's composition.

U.S. Magistrate Judge Laurel Beeler dismissed without prejudice the derivative action launched by shareholder Natalie Ocegueda, finding she had failed to bring her demands to Facebook before filing the suit and that her excuse that doing so would have been futile didn't hold water. 

"The plaintiff has not plausibly alleged any facts...

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