Facebook Ruling Highlights Risks Of Flawed Board Processes

Law360 (November 10, 2020, 4:51 PM EST) -- In United Food and Commercial Workers Union v. Mark Zuckerberg and Facebook Inc., a stockholder of Facebook brought a suit seeking damages, on behalf of the corporation, for losses Facebook incurred by pursuing and then abandoning a reclassification of its capital structure.

The reclassification had been proposed by, and would have primarily benefited, the company's controlling stockholder, Mark Zuckerberg. The reclassification was later abandoned at Zuckerberg's request.

On Oct. 26, the Delaware Court of Chancery dismissed the suit, holding that, because a majority of the directors were independent and disinterested with respect to the reclassification, the plaintiff was not excused from...

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!

TRY LAW360 FREE FOR SEVEN DAYS

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?
Beta
Ask a question!