UNITED FOOD AND WORKERS UNION v. ZUCKERBERG

C.A. No. 2018-0671-JTL.

250 A.3d 862 (2020)

UNITED FOOD AND COMMERCIAL WORKERS UNION and Participating Food Industry Employers Tri-State Pension Fund, Plaintiff, v. Mark ZUCKERBERG, Marc Andreessen, Peter Thiel, Reed Hastings, Erskine B. Bowles, and Susan D. Desmond-Hellmann, Defendants, and Facebook, Inc., Nominal Defendant.

Court of Chancery of Delaware.

Date Decided: October 26, 2020.


Attorney(s) appearing for the Case

P. Bradford deLeeuw , DELEEUW LAW LLC, Wilmington, Delaware; Robert C. Schubert , SCHUBERT JONCKHEER & KOLBE LLP, San Francisco, California; James E. Miller , SHEPHERD FINKELMAN MILLER & SHAH, LLP, Chester, Connecticut; Attorneys for Plaintiff.

Kevin R. Shannon , Berton W. Ashman, Jr. , Tyler J. Leavengood , POTTER ANDERSON & CORROON LLP, Wilmington, Delaware; William Savitt , Ryan A. McLeod , Anitha Reddy , Cecilia A. Glass , WACHTELL, LIPTON, ROSEN & KATZ, New York, New York; Attorneys for Defendants Marc L. Andreessen, Erskine B. Bowles, Susan D. Desmond-Hellmann, Reed Hastings, and Peter A. Thiel.

Raymond J. DiCamillo , Kevin M. Gallagher , Megan E. O'Connor , RICHARDS, LAYTON & FINGER, P.A, Wilmington, Delaware; George M. Garvey , Laura Lin , MUNGER, TOLLES & OLSON LLP, Los Angeles, California; Attorneys for Defendant Mark Zuckerberg.

David E. Ross , Garrett B. Moritz , R. Garrett Rice , ROSS ARONSTAM & MORITZ LLP, Wilmington, Delaware; George M. Garvey , Laura Lin , MUNGER, TOLLES & OLSON LLP, Los Angeles, California; Attorneys for Nominal Defendant Facebook, Inc.


OPINION

Defendant Mark Zuckerberg is the founder, CEO, chairman of the board, and controlling stockholder of nominal defendant Facebook, Inc. At Zuckerberg's request, the Facebook board of directors (the "Board") pursued a reclassification of Facebook's shares. The transaction...

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