Case: Executive Compensation/Unjust Enrichment (Del. Ch.)

Oct. 30, 2019, 6:51 PM

Facebook shareholders who question the company’s executive compensation practices failed to convince the Delaware Court of Chancery to compel the company to produce books and records beyond what the company has already provided voluntarily. The Facebook board of directors “Is exculpated from liability for breaches of the duty of care, and there is no evidence of a loyalty breach arising from Facebook’s executive compensation practices,” the court said. The shareholders claimed “possible fiduciary wrongdoing, mismanagement or unjust enrichment by Facebook directors or officers in connection with advertising sales and compensation awards decisions.” The case is Se. Pa. Transp. Auth. v. Facebook, Inc., 2019 BL 413899, Del. Ch., No. C.A. No. 2019-0228-JRS, 10/29/19

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