On October 5, 2021, the Delaware Court of Chancery appointed the CalSTRS legal team, of which partners Catherine Pratsinakis and Thaddeus Weaver of Dilworth Paxson are members, to lead the shareholder derivative suit against Facebook’s management and its Board.
The CalSTRS Plaintiffs have alleged that certain Facebook officers and directors: (i) allowed Facebook to violate a 2012 Consent Order entered by the Federal Trade Commission to stop illegal sharing of user information, among other misconduct; (ii) abdicated their oversight duties by failing to set up any meaningful internal audit controls to ensure Facebook’s compliance with the 2012 Consent Order, and (iii) engaged in insider trading while concealing Facebook’s misconduct. Under the undue influence of its founder and CEO Mark Zuckerberg, Facebook suffered billions in damages and untold damages to its reputation worldwide.
Dilworth Paxson is honored to be amongst the excellent team of firms and lawyers appointed by the Court to prosecute this significant corporate governance litigation. In re Facebook, Inc. Derivative Litig., C.A. No. 2018-0307(Del. Ch.)