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Dorsey & Whitney LLP

The Supreme Court Update - June 10, 2024

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Today, the Supreme Court of the United States granted certiorari in two cases: Facebook v. Amalgamated Bank, No. 23-980: This securities law case arises from a shareholder lawsuit against Facebook, which claimed Facebook...more

Robinson+Cole Data Privacy + Security Insider

Shareholder Suit Against Meta for Data Breach Goes Forward

Meta (formerly Facebook) has been hit with a revived class-action shareholder suit stemming from its involvement with Cambridge Analytica, a firm that infamously mined Facebook user data for hyper-targeted political...more

Hogan Lovells

United Food & Com. Workers Union v. Zuckerberg: Exculpatory clause does not render demand futile

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In United Food & Com. Workers Union v. Zuckerberg, No. 404, 2020 (Del. Sup. Sep. 23, 2021), the Delaware Supreme Court adopted a new, three-part test for determining when a shareholder is required to make a pre-suit demand on...more

Lowenstein Sandler LLP

Delaware’s New Universal Demand-Futility Test

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On Sept. 23, the Delaware Supreme Court endorsed a new universal three-part demand-futility test in United Food and Commercial Workers Union and Participating Food Industry Employers Tri-State Pension Fund v. Zuckerberg, et...more

Fenwick & West LLP

Delaware Supreme Court Endorses a New Three-Part Demand Futility Test

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On September 23, 2021—in United Food and Commercial Workers v. Zuckerberg—the Delaware Supreme Court endorsed a new universal three-part demand futility test. The decision will likely have far-reaching consequences, including...more

Holland & Knight LLP

Delaware Supreme Court Adopts Universal 3-Part Test to Assess Demand Futility

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In a Sept. 23, 2021, decision that may make it easier for Delaware boards of directors to obtain an early dismissal of derivative suits brought against them, the Delaware Supreme Court in United Food and Commercial Workers...more

Goodwin

United Food’s “New” Delaware Demand Futility Test: The More Things Change, the More They Stay the Same

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On September 23, 2021, in United Food and Commercial Workers Union v. Zuckerberg et al., the Delaware Supreme Court restated and refined the demand futility test for bringing shareholder derivative claims when it affirmed the...more

Skadden, Arps, Slate, Meagher & Flom LLP

California District Court Dismisses Derivative Suit Against Facebook Board Members and Executives Challenging Alleged Lack of...

On March 19, 2021, the United States District Court for the Northern District of California ordered the dismissal of Natalie Ocegueda v. Zuckerberg, Case No. 20-cv-04444-LB, a shareholder derivative suit purportedly on behalf...more

Troutman Pepper

First Diversity-Driven Derivative Suit in Facebook Case Tossed by Northern District of California

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As Troutman Pepper recently reported, the second half of 2020 brought a new wave of board diversity derivative litigation. These shareholder suits claimed boards of directors of public companies allegedly breached their...more

Proskauer - Corporate Defense and Disputes

Diversity Derivative Suit Dismissed

A shareholder derivative action which had alleged that Facebook’s lack of diversity caused a negative effect on its stock price was rejected by a California federal magistrate judge last week. The court held that the...more

Morris James LLP

Chancery Denies Section 220 Bid for Executive Compensation Records Involving Facebook

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Southeastern Pa. Trans. Auth. v. Facebook, Inc., C.A. No. 2019-0228-JRS (Oct. 29, 2019) - Shareholders of a Delaware corporation have a qualified right to access corporate books and records for a “proper purpose.” ...more

Wilson Sonsini Goodrich & Rosati

Delaware Court of Chancery Issues Noteworthy Decision Denying Section 220 Demand and Reinforcing Judicial Deference on Executive...

The Delaware Court of Chancery recently denied two books and records demands made by stockholders of Facebook, Inc. that sought to investigate alleged wrongdoing surrounding Facebook's executive compensation practices at a...more

Robins Kaplan LLP

Your Daily Dose of Financial News

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The Dow’s serious dive on Friday helped put all three major indices into correction territory (aka, all are now at least 10% below their peak from earlier this year....more

Epiq

The Price of Data

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“We have a responsibility to protect your information. If we can’t, we don’t deserve it.” This is the beginning of a letter written by Mark Zuckerberg, featured in full-page ads in the Washington Post, the New York Times,...more

Morris James LLP

Chancery Rejects Facebook Stockholder Ratification Argument

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In Espinoza v. Zuckerberg, a stockholder challenged the Facebook board of directors' unanimous approval of a compensation plan for the company's six non-employee directors. The board consisted of eight directors, with only...more

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