Book ’Em
Facebook doesn’t just face billions in fines from government regulators over its incessant privacy violations: shareholders are plenty angry too. After one breach, Facebook’s stock value dropped 19 percent, or $120 billion of its market capitalization. Vice Chancellor Joseph Slights of the Delaware Chancery Court ruled that Facebook, which is incorporated in Delaware, must turn over records of its violations to shareholders to allow them to prepare a lawsuit against the company. “Evidence presented at trial provides a credible basis to infer the board and Facebook senior executives failed to oversee Facebook’s compliance with the [Federal Trade Commission] consent decree and its broader efforts to protect the private data of its users,” Slights ruled. (RC/Reuters) ...Such lawsuits work if the board and senior executives pay any damages out of pocket, rather than from the company’s bank account.Original Publication Date: 02 June 2019
This story is in True’s book collections, in Volume 25.
This story is in True’s book collections, in Volume 25.
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