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Business Associations Keyed to Bainbridge
Espinoza v. Zuckerberg
Citation:
124 A.3d 47 (Del. Ch. 2015)Facts
Nominal Defendant Facebook, Inc. is a Delaware corporation. Its Class B common stock has ten votes per share and its Class A common stock has one vote per share. Defendant Mark Zuckerberg is the founder of Facebook. He has served as Facebook’s Chief Executive Officer since 2004. Zuckerberg, principally due to his ownership of the super-voting Class B shares, controlled 61.6% of the total voting power of Facebook’s common stock. On August 21, 2013, the Compensation Committee discussed the compensation of Facebook’s non-management directors. On June 6, 2014, plaintiff filed a derivative complaint on behalf of Facebook against the eight members of its board of directors. On August 18, 2014, defendants moved for summary judgment. On the same day, Zuckerberg filed an affidavit in support of the summary judgment motion.
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