• Company
  • Description
  • Recovery Amount
  • Facebook
  • In re Facebook Class C Reclassification Litigation
  • Mooted on Eve of Trial

 

Delaware Chancery Court

G&E served as co-lead counsel for plaintiffs, alleging that Facebook Chairman and CEO Mark Zuckerberg, as well as other officers and directors, breached their fiduciary duties to the class by approving the reclassification of Facebook stock. The reclassification, if implemented, would have allowed Mark Zuckerberg to maintain majority voting control while reducing his economic stake in the company by over 65%.  Just days before the trial was set to begin with Mark Zuckerberg’s testimony, the Facebook Board of Directors met and decided to abandon the reclassification. Because G&E was seeking to enjoin the reclassification, the Board’s abandonment of it was a complete win for the plaintiffs and the class.