Face­book CEO drops plans to re­clas­sify

Weekend Argus (Sunday Edition) - - NEWS -

MARK Zucker­berg said that Face­book was with­draw­ing plans to cre­ate a new class of stock that would have let him keep tight rein on the so­cial me­dia com­pany, even as he sold down his stake to fund his phi­lan­thropy.

A class-ac­tion trial on the mat­ter was due to start next week in Delaware, but was called off with Zucker­berg’s an­nounce­ment. He had been slated to tes­tify dur­ing the trial.

The bil­lion­aire chief ex­ec­u­tive said in a Face­book post that be­cause the value of its stock has grown, he can fully fund the phi­lan­thropy while still keep­ing vot­ing con­trol of the com­pany for “20 years or more”, mak­ing the stock-re­clas­si­fi­ca­tion plan un­nec­es­sary. A lawyer rep­re­sent­ing Face­book share­hold­ers in a law­suit against the com­pany deemed it a win for clients.

“We’re thrilled that Face­book has dropped the re­clas­si­fi­ca­tion,” at­tor­ney Stu­art Grant said.”To­day’s move is a to­tal vic­tory for stock­hold­ers.” –

Daily Mail

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