Shareholder sues Google for stock divide
Search engine giant Google Inc and its board were sued Monday by a shareholder intending to obstruct the company’s stock divide according to court documents.
Google made the revelations in April about its stock split in which shareholders would get one new share of non-voting “Class C” stock for each existing “Class A” share.
The split would enable Google to issue new shares for acquisitions and employee compensation without diluting the 56.3 per cent voting stake enjoyed by Page and Brin or diminishing their “iron clad grip” on the company, the complaint stated.
The alleged class action lawsuit by the Brockton Retirement Board blames the co-founders and Google’s board of violating their fiduciary duty to the company’s shareholders.
Page and Brin “wish to retain this power, while selling off large amounts of their stock holdings, and reaping billions of dollars in proceeds,” said the complaint, which was filed in the Court of Chancery in Delaware, where Mountain View, California-based Google is incorporated.
The case is Brockton Retirement Board v Larry Page et al. Delaware Court of Chancery, No. 7469.