Stay current on changes and developments in corporate law with a wide variety of resources and tools.
May 17 — Majority union-owned Amalgamated Bank and Swedish pension fund Sjunde AP-Fonden (AP7) were appointed co-lead plaintiffs May 17 in a purported class action challenging Facebook Inc.'s plan to create a new class of non-voting stock.
Vice Chancellor J. Travis Laster also appointed law firms Grant & Eisenhofer PA and Kessler Topaz Meltzer & Check LLP as co-lead counsel, and Prickett Jones & Elliott PA as additional counsel in the consolidated Delaware Chancery Court case.
According to their jointly-filed application to be appointed lead plaintiffs, Amalgamated Bank and AP7 collectively hold 1.8 million shares of Class A Facebook stock, valued at approximately $220 million.
In April, Facebook's board announced that it was recommending that shareholders approve the creation of new class C shares, which provide no voting rights. Under the proposed plan, the company would potentially pay a dividend of two shares of Class C stock for each share of Class A and Class B stock.
Since the announcement, 13 shareholder lawsuits have been filed alleging that directors breached their fiduciary duties by supporting the reclassification of shares. The plaintiffs claim that the reclassification would unfairly treat minority stockholders (85 CARE, 5/3/16).
Currently, stockholders who own Facebook Class A shares have one vote per share, and those with Class B shares have 10 votes per share. Facebook founder Mark Zuckerberg, who owns or controls the majority of Facebook's Class B stock, has over 60 percent of the voting power in the company and can alone approve the plan at Facebook's June 20 annual meeting.
The court's order is available at http://www.bloomberglaw.com/public/document/CONS_W_12282_12283_12287_12292_12303_12306_12309_12317_12318_1231.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)