Grant & Eisenhofer served as co-lead counsel in a victory – on eve of trial – halting Facebook’s stock reclassification that would have entrenched Mark Zuckerberg’s control
Plaintiff(s):
Shareholders of Facebook, Inc.
Case type / claims:
Class action alleging breaches of fiduciary duty by Facebook’s Board of Directors and CEO Mark Zuckerberg in approving a stock reclassification plan designed to allow Zuckerberg to retain majority voting control while reducing his economic ownership by more than 65%.
Defendant(s):
Mark Zuckerberg and Facebook, Inc. Board of Directors
Jurisdiction:
Delaware Chancery Court
Year:
2017
Outcome:
- Facebook’s Board abandoned the reclassification plan just days before trial — a complete win for shareholders.
- Case reinforced the limits of insider-driven control mechanisms and the effectiveness of shareholder litigation in preserving voting rights.
