Investors sue Mark Zuckerberg over stock scheme to avoid California billionaire tax

Source Scout · Courthouse News Service reports: Stockholders say Zuckerberg’s plan would allow him to preserve his control over the company by creating a new class of shares and avoid paying a one-time 5% wealth tax. (CN) — Mark Zuckerberg faces a class action filed Tuesday by a group of common stockholders challenging a proposed reclassification that would secure his control over Meta. In the lawsuit , filed in the Court of Chancery for Delaware, the plaintiffs claim Zuckerberg wrongfully used “non-voting stock” to preserve his control as founder by creating a new “Class C common stock” that holds the same economic rights as the two existing classes but with no voting rights.

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