Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.


In a stunning shareholder victory on the eve of trial, Facebook (NASDAQ: FB) announced it was dropping plans to issue a new class of stock that would have allowed CEO Mark Zuckerberg to retain a voting majority of the company’s shares even as he sold off substantial blocks of his own shares in a pledge to give away most of his wealth during his lifetime.

A class action trial on the matter was scheduled to begin next Tuesday, September 26 in the Delaware Court of Chancery, with Mr. Zuckerberg slated to face questions on the stock reclassification, which shareholders asserted conferred an unfair economic advantage to the social media giant’s founder. Stockholders were also challenging the way in which the reclassification plan had been negotiated with a special committee of Facebook’s board of directors – several of whom were expected to testify in October.

In their lawsuit originally filed in 2016 and certified as a class action this past April, shareholders were asking the Delaware court to permanently block the stock reclassification plan, even though it had been approved by clout of Mr. Zuckerberg’s control of the vote.

Instead, Facebook’s board announced today that it was withdrawing its plan to issue the non-voting C shares, resulting in an unconditional win for common shareholders, whose sole objective in bringing suit was to block the reclassification.

Leading shareholder attorney Stuart Grant of Grant &Eisenhofer, representing several institutional investors, including Facebook shareholder Amalgamated Bank, was preparing to handle cross-examination of Mr. Zuckerberg at trial.

“We’re thrilled that Facebook has dropped the reclassification,” Mr. Grant said, noting that shareholders were not seeking economic or other damages against the company. “Stopping the issuance of the non-voting C shares is all the relief we were asking for at trial. Today’s move is a total victory for stockholders.”

Also commenting was Lee Rudy, a partner with Kessler Topaz Meltzer & Check, representing co-lead plaintiff, AP7 Safa, a fund managed by Sweden’s state pension fund.  “We are extremely pleased at the decision by Facebook not to proceed with the share reclassification – the board has seen the wisdom of acting equitably on behalf of all shareholders.”

The lawsuit (Consolidated C.A. No. 12286-VCL) is now expected to be dismissed as moot sometime next week.