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Facebook's Stock Plan Consolidates Power To Founder: Suit

Law360, Los Angeles (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...
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