Zuckerberg Under Investigation for Potential Breaches of Fiduciary Duties
Schubert Jonckheer & Kolbe LLP has launched an investigation into whether certain directors of Facebook, Inc. (NYSE: FB) breached their fiduciary duties in connection with a failed stock reclassification plan in 2015 and 2016 that was designed to appease CEO and founder Mark Zuckerberg’s personal philanthropic agenda. The plan would have permitted Mr. Zuckerberg to sell the vast majority of his Facebook stock without disturbing his majority voting control of the company, and without Facebook receiving any significant value in return. This windfall cash benefit to Mr. Zuckerberg may have been the result of a tainted process. Facebook later abandoned the proposed reclassification in late 2017, but not before unjustly spending massive amounts of money on financial advisors and attorneys in a futile attempt to close the deal, exposing the company to expensive litigation, and damaging Facebook’s reputation and goodwill.
The Schubert Firm’s investigation focuses on whether Mr. Zuckerberg and other Facebook directors violated their fiduciary duties of loyalty owed to the company in connection with the unsuccessful stock reclassification plan.
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