Chancery Tosses Suit Over Facebook Stock-Shuffle Plan

Law360 (October 26, 2020, 6:57 PM EDT) -- A Delaware vice chancellor on Monday tossed a derivative lawsuit against current and former directors of Facebook and CEO Mark Zuckerberg seeking at least $95 million in damages related to an abandoned stock reclassification plan allegedly driven by Zuckerberg's personal philanthropic agenda, finding an investor didn't first ask the company to consider filing suit.

In a 63-page opinion, Vice Chancellor J. Travis Laster ruled that the suit against Zuckerberg and five current or former Facebook directors must be tossed because investor the United Food and Commercial Workers Union and Participating Food Industry Employers Tri-State Pension Fund had not shown it would...

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