Facebook Inc (NASDAQ:FB) Investor Files Lawsuit Over Compensation Of Certain Director

If you are a current long term investor in Facebook Inc (NASDAQ:FB) shares, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Case Name: 
Facebook Shareholder Derivative Lawsuit 06/13/2014
Case Status: 
Lawsuit Filed
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Shareholder Derivative Action
Date Filed: 

June 16, 2014 (Shareholders Foundation) - An investor in shares of Facebook Inc (NASDAQ:FB) filed a lawsuit against directors of Facebook Inc in connection with the compensation of certain nonexecutive directors.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:FB investors by allowing certain nonexecutive directors to be compensated with allegedly excessive stock awards compared to their peers.

The plaintiff says that certain nonexecutive directors are paid over 40% more than the average nonexecutive director at comparable companies such as Ebay, Linkedin Corp, Yahoo and Netflix, while Facebook has between 66 and 49 % lower revenues than its peers.

The plaintiff claims that the defendants have abused this power by giving themselves excessive stock awards that when combined with their other forms of compensation gives the non-executive members of the board a yearly take beyond what could be considered reasonable.

The plaintiff seeks to recoup the unfair excessive compensation the director defendants awarded themselves and impose meaningful restrictions on the board's ability to award itself compensation going forward.

Facebook Inc reported that its annual Total Revenue rose from over $1.97 billion in 2010 to over $7.87 billion in 2013 and that its respective Net Income increased from $606 million to $1.5 billion. Shares of Facebook Inc (NASDAQ:FB) grew from almost $18 per share in August 2012 to as high as over $72 per share in March 2014.