Mark Zuckerberg's plan to create non-voting Facebook shares is going to trial in September (FB)

pulse

May 4, 2017 11:53 PM

The class action lawsuit seeks to block Facebook's plan to reclassify its stock structure and create a new class of non-voting shares.

Facebook shareholders seeking to block Mark Zuckerberg's plan to create a new class of non-voting stock will have their day in court.

The class action lawsuit seeks to block create a new class of non-voting shares

In the meantime, Zuckerberg's desired stock reclassification is pending the outcome of the lawsuit.

Interestingly, the stock structure trial is only one of two big cases on the docket for Facebook this year. The company is also facing a lawsuit from Social Ranger LLC, which has sued Facebook for antitrust violations related to virtual currency services.

Facebook said in its 10Q filing Thursday that the case, which it believes is without merit, is schedule to go to trial on June 12, 2017.

U.S. District Court for the District of Delaware and seeks treble damages and an injunction. The court denied our motion to dismiss; our motion for summary judgment is pending. We believe this lawsuit is without merit, and we intend to vigorously defend against all claims asserted. Trial is scheduled to begin on June 12, 2017. Because the outcome of litigation is inherently uncertain, we believe it is reasonably possible that we may incur a loss in connection with this matter. However, we do not believe a material loss is probable and we are unable to estimate a reasonable range of loss, if any, that could result were there to be an adverse final decision, and we therefore have not accrued a liability for this matter. If an unfavorable outcome were to occur in this case, it is possible that the impact could be material to our results in the period(s) in which any such outcome becomes probable and estimable."

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