Latest news with #KathaleenMcCormick
India Today
6 days ago
- Business
- India Today
Meta investors, Zuckerberg settle $8 billion privacy lawsuit over Facebook data violations
The agreement was announced in the Delaware Court of Chancery on Thursday, just before the trial was to resume its second trial, presided over by Judge Kathaleen McCormick, was halted after plaintiffs' lawyer Sam Closic informed the court that a settlement had been reached. Details of the agreement remain confidential, and lawyers for the defence declined to to Reuters, the lawsuit was filed by Meta shareholders who aimed to hold CEO Mark Zuckerberg, venture capitalist and board member Marc Andreessen, former COO Sheryl Sandberg, and others accountable for the company's massive legal costs, primarily the $5 billion fine imposed by the US Federal Trade Commission (FTC) in 2019. That fine followed revelations about Facebook's failure to comply with a 2012 agreement to protect user Shareholders alleged that top executives ignored the company's legal obligations and ran Facebook as an illegal data-gathering operation. The case was based on Caremark claims, a rare and difficult-to-prove legal standard in Delaware corporate law related to board oversight and Sandberg were expected to testify next week, along with other prominent former board members such as Peter Thiel and Reed Hastings. Sandberg was previously sanctioned for deleting emails during litigation, complicating her settling, the defendants avoid testifying under oath, while shareholders sidestep the challenge of proving complex corporate law claims. The case followed the infamous Cambridge Analytica scandal, in which user data was improperly accessed for political advertising during the 2016 US presidential reported by Reuters, Jason Kint, CEO of Digital Content Next, criticised the settlement, saying it denied the public a chance at accountability. 'Facebook has reframed the Cambridge Analytica scandal as a few bad actors, avoiding deeper scrutiny of its surveillance-based business model,' he said. Meta has not commented on the settlement.- EndsTrending Reel
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.
Yahoo
21-05-2025
- Business
- Yahoo
Elon Musk Says Being Tesla CEO Might Kill Him
America's most infamous tech baron has no plans to quit Tesla anytime soon, according to a recent interview. Speaking remotely as a looming, dystopian figure (something he seems to love) at Bloomberg's Qatar Economic Forum on Tuesday, Musk said he was committed to leading Tesla for at least the next five years. "No doubt about that at all?" the interviewer asked as he hovered above. "Well," Musk paused, "no, I'd die." The world's richest person was speaking as confusion grows regarding his official role with DOGE and his fiduciary commitments to Tesla shareholders. Tesla shareholders previously devised two pay packages worth $56 billion — both of which were rejected by Delaware judge Kathaleen McCormick. During today's interview, Musk had some choice words for the judge. "I'm confident that whatever some activist posing as a judge in Delaware happens to do will not affect future compensation," Musk muttered. "Not the judge, the activist who is cosplaying a judge in a Halloween costume," the billionaire sneered. Last week, the Financial Times reported that Tesla has convened a "special committee" to review Musk's hefty salary, which is primarily based on company stock options. "Does that mean that the value of your pay doesn't have any bearing on your decision?" the interviewer asked Musk of his choice to stay, during today's event. "Uh, well, that's not really a story for discussion in this forum," the tech tycoon said. "I think obviously there should be conversation for, if there's something incredible is [sic] done, the compensation should match." Going by that logic, Tesla's special committee may come up empty-handed when looking for reasons to justify paying Musk at all, let alone for "something incredible." In the first three months of 2025, Tesla's sales plummeted 13 percent compared to the same period in 2024 — the biggest drop in the company's history. Tesla is likewise terminally late on rolling out its "robotaxi" service, while its new Model Y struggles to win over buyers, and over 10,000 unsold Cybertrucks gather dust. During the interview, Musk went on to confirm that he's pushing ahead with his lawsuit against OpenAI, the stated goal of which is to contest OpenAI's restructuring as a for-profit venture. Reading between the lines, it's not hard to see an ulterior motive for Musk: his for-profit AI company, xAI, is in direct competition with OpenAI's ChatGPT. Musk also stated that he plans to scale back his political spending, after dumping millions into right-wing political campaigns. "I think I've done enough," he said. More on Musk: Elon Musk "Finished," His Close Allies Admit Sign in to access your portfolio
New York Times
11-03-2025
- Business
- New York Times
Top Law Firms Defend Overhaul of America's Business Court
As Delaware lawmakers prepare to hold hearings tomorrow about a bill that could reshape corporate America, some of the biggest corporate law firms are coming out in favor of it. On Tuesday, 21 corporate law firms — including Simpson Thacher and Bartlett; Cravath, Swaine & Moore; and Paul, Weiss, Rifkind, Wharton & Garrison — will publish a letter strongly supporting legislation that would override a series of decisions by the Delaware Court of Chancery. These rulings have prompted backlash from companies and led many, including Meta, to contemplate moving their incorporation outside the state. The letter's argument: The bill is 'an important step in maintaining Delaware's status as the jurisdiction of choice for sophisticated clients when they create companies,' the law firms write. Some background: Delaware has been ensnared in controversy after several rulings, including Chancellor Kathaleen McCormick's decision last year to nullify a big payout for Elon Musk at Tesla. While Musk's ire over that decision brought attention to the chancery court, many corporate lawyers say they're more broadly frustrated with the court's treatment of companies with controlling shareholders, arguing that it has been overly deferential to noncontrolling shareholders. Given how corporate America fuels Delaware's budget, a group of Delaware state senators proposed a bill last month to amend the state constitution that would effectively override years of case law by the Delaware Court of Chancery. The group sidestepped the usual process for proposing bills, allowing it to move swiftly — but critics say that it also left out early input from key members of the influential Delaware bar. The issue was a major topic at Tulane University's Corporate Law Institute conference, a big gathering of deal makers held last week in New Orleans. 'We are disempowering Delaware courts,' said Ned Weinberger, a partner at the plaintiffs' law firm Labaton Keller Sucharow, arguing the amendment would erode the voice of minority shareholders. Scott Barshay, a partner at Paul, Weiss and a top deal maker, said the amendment would help stop a corporate exodus from Delaware. 'It's very important that this legislation gets passed,' he said onstage at the conference. The letter was born out of sideline conversations at the conference. It argues that, despite the relatively unusual intervention by the Delaware legislature, a response to corporate angst is not unprecedented. 'Over its long history at the epicenter of American corporate law, Delaware has repeatedly adjusted its approach in order to modernize and respond to market developments,' the lawyers write. Who's in — and who's out: Other law firms that signed the letter include Kirkland & Ellis; Latham & Watkins; and Weil, Gotshal & Manges. Corporate law insiders will notice one major law firm that didn't sign: Wachtell, Lipton, Rosen & Katz, where Leo Strine Jr., a former chancellor of the Court of Chancery, is of counsel. (That said, Martin Lipton, one of the firm's founders, wrote in support of the bill shortly after its release.) At the conference, Mr. Strine allowed that more companies have become concerned about unpredictability in Delaware courts. Separately, David Katz, a senior M&A partner at Wachtell, said the bill wasn't connected to Mr. Musk's criticism of Delaware, a common critique of it.
Yahoo
06-03-2025
- Business
- Yahoo
Paramount-Skydance Deal Faces Legal Challenge-Here's What It Means for Shareholders
A Delaware judge signaled Thursday that she is open to considering a lawsuit seeking to block Paramount Global's (NASDAQ:PARA) $8 billion sale to Skydance Media, citing concerns that the deal shortchanges public shareholders. The lawsuit, filed by New York City pension funds, alleges Paramount's special committee breached its fiduciary duties by rejecting a competing $13.5 billion bid from Project Rise Partners. However, Chancellor Kathaleen McCormick declined to issue an immediate restraining order, stating that while harm to shareholders exists, the deal is not yet imminent. Warning! GuruFocus has detected 4 Warning Signs with PARA. McCormick ruled that Paramount must notify the pension funds at least five business days before closing, allowing them to seek a temporary restraining order (TRO) if necessary. Regulatory approvals for the merger are still pending. This article first appeared on GuruFocus. Sign in to access your portfolio
