Latest news with #ChanceryCourt
Forbes
4 days ago
- Business
- Forbes
Zuckerberg Settles $8 Billion Privacy Case—Avoids Testifying
Meta CEO Mark Zuckerberg and other executives reached a settlement with a group of the company's shareholders Thursday, ending a long-running, potentially blockbuster $8 billion trial over allegations Facebook knowingly harvested user data. Facebook shareholders sued Meta leadership in 2018, alleging the company knowingly harvest user ... More data. Copyright 2024 The Associated Press. All rights reserved. An attorney representing Meta shareholders told Judge Kathaleen McCormick in Delaware's Chancery Court a settlement was reached with Zuckerberg and other members of the company's leadership, multiple outlets reported, though details of the settlement were not immediately available. Sam Closic, the shareholders' attorney, said an agreement was reached quickly, according to Reuters. Facebook shareholders sued Zuckerberg, former COO Sheryl Sandberg and other billionaires tied to the company in 2018, alleging they violated a Federal Trade Commission agreement by sharing user data with third-party apps without their consent. Shareholders requested $8 billion in damages, and the trial was expected to feature testimony from Zuckerberg, Sandberg and billionaires Peter Thiel, Marc Andreessen and Netflix CEO Reed Hastings, all of whom served on Facebook's board. Neither Meta nor attorneys representing the company immediately responded to requests for comment. Zuckerberg, Sandberg and Konstantinos Papamiltiadis, Facebook's former vice president of partnerships, were among those named as defendants. Shareholders also named Andreessen, Thiel, Hastings and other Facebook board members, including former Bill & Melinda Gates Foundation CEO Susan Desmond-Hellman, eBay CFO Peggy Alford and former American Express CEO Kenneth Chenault. Jeff Zients, President Joe Biden's former chief of staff who testified Wednesday, was named alongside Erskine Bowles, President Bill Clinton's former chief of staff, for their roles on Facebook's board. Key Background A lawsuit between shareholders of Facebook, which rebranded to Meta in 2021, arose in 2018 over alleged violations of an agreement the company reached with the FTC. That agreement included a consent order in which Facebook agreed to create a 'comprehensive privacy program' to address privacy concerns. Their claims were highlighted by the company's Cambridge Analytica scandal, during which Facebook user data was harvested through a third-party app and then allegedly used to influence Brexit and the 2016 election. Zuckerberg and other defendants disputed claims of wrongdoing, arguing the shareholders failed to back up their claims of company officials acting unlawfully. Sandberg was sanctioned by Delaware's Chancery Court in January, after she allegedly deleted personal emails that were material to the trial. Sandberg claimed she rarely used her personal email and information from those deleted emails was preserved as other users were copied in on those messages. Forbes Valuation Zuckerberg is the world's third-wealthiest person with a fortune valued at $241.1 billion, according to Forbes' latest estimates. Sandberg has a net worth valued at $2.4 billion as of Thursday, while Andreessen ($2 billion), Hastings ($6.8) and Thiel ($23.2 billion) also rank among the world's richest. Further Reading Forbes Mark Zuckerberg Goes On Trial Today In $8 Billion Meta Privacy Lawsuit—What To Know By Alison Durkee
Time of India
09-07-2025
- Business
- Time of India
After Tesla CEO Elon Musk, Silicon Valley's largest VC company Andreessen Horowitz asks tech companies to leave Delaware; blames 'unprecedented level of ...' in an open post
Representative Image Silicon Valley venture capital giant Andreessen Horowitz is relocating its corporate incorporation from Delaware to Nevada, citing concerns over bias in Delaware's Court of Chancery against company founders and boards. According to a report by Bloomberg, the company also urges its portfolio companies to follow suit, signaling a potential shift in the tech industry's long-standing preference for Delaware. In a blog post published Wednesday, July 10, Andreessen Horowitz's legal and policy leaders -- Jai Ramaswamy, Andy Hill, and Kevin McKinley -- slammed Delaware's Chancery Court for injecting 'unprecedented subjectivity' into recent rulings, eroding the state's reputation as a business-friendly incorporation hub. 'Some startups hesitate to leave Delaware based in part on concerns for how investors will react,' the trio wrote. 'As the largest VC firm in the country, we hope our decision signals to our portfolio companies, as well as to prospective portfolio companies, that such concerns may be overblown. When Elon Musk called companies to leave Delaware 'The move comes amid growing frustration in Silicon Valley with Delaware's judicial system, particularly after a Chancery Court judge blocked Elon Musk's $56 billion compensation package at Tesla Inc. Musk, a vocal critic of Delaware, reincorporated Tesla in Texas in June, which recently established a business court system, and has shifted other ventures, such as SpaceX, to Nevada. Other major companies, including Dropbox Inc., TripAdvisor, and Bill Ackman's Pershing Square Capital Management, have also left Delaware, while Meta Platforms Inc. considered a similar move in January, according to Bloomberg. Andreessen Horowitz on why it is openly telling technology companies to leave Delaware by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Why seniors are rushing to get this Internet box – here's why! Techno Mag Learn More Undo Andreessen Horowitz, founded in 2009 and incorporated in Delaware until now, had previously advised its startups to incorporate there. The firm emphasized the transparency of its decision, stating, 'We could have made this move quietly, but we think it's important for our stakeholders, and for the broader tech and VC communities, to understand why we've reached this decision. Delaware has long dominated as the go-to state for corporate incorporation, hosting over 2 million businesses, including more than 60% of Fortune 500 companies. However, Nevada and Texas are gaining traction by offering corporate statutes with stronger protections against investor lawsuits and greater control for company leaders like Musk. Critics warn that this trend could trigger a 'race to the bottom' in corporate governance standards. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Washington Post
03-07-2025
- Washington Post
Tennessee death row inmate makes last-ditch effort to prevent Aug. 5 execution
NASHVILLE, Tenn. — Attorneys for a Tennessee death row inmate have launched a last-ditch effort to prevent his Aug. 5 execution . In Nashville's Chancery Court, they are asking a judge to require the Tennessee Department of Correction to deactivate an implanted defibrillation device similar to a pacemaker in the moments before Byron Black's execution. If the judge rules in their favor, such an order could potentially delay the execution until the state finds someone willing to do the deactivation.
Bloomberg
11-06-2025
- Business
- Bloomberg
Diller's IAC in $30 Million Settlement Over Match.com Spinoff
Barry Diller's IAC agreed to a $30 million settlement to resolve claims that investors were shortchanged in its spinoff of Match Group Inc., which operates dating apps including Tinder and Hinge. The case filed in Delaware Chancery Court, helped spark major changes to laws on dealmaking involving companies and controlling shareholders — changes catalyzed by Elon Musk's decision to reincorporate his companies outside Delaware.
Business Wire
05-06-2025
- Business
- Business Wire
Citizens for Judicial Fairness Slams Excessive Delaware Chancery Fees Following New Stanford Report
WILMINGTON, Del.--(BUSINESS WIRE)--Citizens for Judicial Fairness today responded to a new Stanford study from renowned professor Joseph Grundfest that shows Delaware's Chancery Court has become a national outlier in awarding excessive legal fees. The report, which analyzed thousands of cases, found that Delaware hands out attorney fee multipliers at a rate up to 57 times higher than federal courts – with some attorneys being paid as much as $35,000 an hour. The findings were highlighted in The New York Times' DealBook newsletter, and arrive as more companies continue to question Delaware's value as the 'gold standard' for corporate law. Citizens for Judicial Fairness released the following statement in response to the study: 'This study confirms what we've been saying for years: Delaware's Chancery Court is more interested in enriching lawyers than serving shareholders or protecting everyday investors. Two judges, Chancellor Kathaleen McCormick and Vice Chancellor Travis Laster, are responsible for a majority of these outrageous fee awards, and must be reined in so that litigants in Delaware's courts can have reasonable fee expectations. The pattern is clear: corporate insiders and well-connected firms are cashing in while Delaware's reputation burns. Delaware lawmakers can't look the other way anymore. These payouts aren't normal, and they aren't defensible. They're part of a system that's increasingly out of step with every other court in America. It's time for serious reform – and if Delaware won't fix it, the market will.' The Stanford paper shows that two judges alone account for over 60% of the supersized awards, which often exceed ten times the base legal fee. In some cases, lawyers were paid nearly $50,000 an hour after inflation adjustment. No federal judge has ever come close to authorizing these kinds of fees. Citizens for Judicial Fairness has long advocated for transparency, common-sense reform, and balance in the state's corporate legal system, and has warned that if left unchecked, judicial overreach will drive companies, jobs, and corporate revenue out of Delaware.
