Facebook's Stock Plan Consolidates Power To Founder: Suit

By Kat Greene (April 29, 2016, 10:39 PM EDT) -- Facebook Inc. shareholders on Friday accused the company's board of hatching a plan to issue nonvoting stock that would hand over more power to CEO Mark Zuckerberg, giving him the equivalent of "billions of dollars in equity" he won't pay for, according to a proposed class action filed in Delaware.

The company's plan to issue Class C stock, announced Wednesday, would effectively redistribute power in a way that would enable Facebook to buy other companies or issue stock to employees without diluting Zuckerberg's voting power or "diminishing his iron-clad grip over company management," investor Eric McGinty said in a Delaware Chancery...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!