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Facebook Hit With Derivative Suit Over Stock Shuffle Plan

Law360 (September 12, 2018, 10:36 PM EDT) -- A pension fund hit Facebook’s board and CEO Mark Zuckerberg with a derivative shareholders lawsuit in Delaware Chancery Court on Wednesday, accusing them of unjustly spending massive amounts of money on a now-abandoned stock reclassification plan driven by Zuckerberg’s personal philanthropic agenda.

In a 41-page, one-count complaint, the United Food And Commercial Workers Union and Participating Employers Tri-State Pension Fund claims that Facebook’s board breached its fiduciary duties by pushing for the stock reclassification plan, which would have allowed Zuckerberg to retain control of the company...
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