Mark Zuckerberg to testify in shareholder suit on voting rights
Mark Zuckerberg will testify before the court which is exploring whether the board had shareholder interests in mind when it approved a new class of non-voting shares
San Francisco: Mark Zuckerberg is heading back to court. Facebook Inc.’s chief executive officer is expected to testify later this month in a shareholder lawsuit over voting power, according to a person familiar with the plans.
The trial, set to start on 26 September, will explore whether the board had shareholder interests in mind when it approved a new class of non-voting shares. The move lets Zuckerberg keep voting control of Facebook even if he sells shares. He asked for the change so he could give away most of his wealth to charities.
But shareholders alleged conflict of interest in a complaint that disclosed an embarrassing episode: Director and venture capitalist Marc Andreessen worked with Zuckerberg behind the scenes to pass the change, even though he was on a committee that was supposed to look out for shareholders.
“Facebook is confident that the special committee engaged in a thorough and fair process to negotiate a proposal in the best interests of Facebook and its shareholders,” the company said in a statement on Friday.
This will be Zuckerberg’s second court appearance this year. He testified in a case about whether the company’s Oculus virtual reality headset maker used stolen computer code. Zuckerberg said the claims were false, but Facebook lost, with a jury awarding $500 million to plaintiff ZeniMax Media Inc. Bloomberg
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