Tuesday, June 18, 2013

Google settles investor lawsuit over stock split

From Bloomberg:  Google Inc., operator of the world’s largest Internet search engine, settled a lawsuit on the brink of trial over a plan for a stock split that shareholders claimed would unfairly allow founders Larry Page and Sergey Brin to strengthen their corporate control.

Lawyers for a Massachusetts pension fund and other investors were scheduled to begin presenting testimony Tuesday in a Delaware court about a stock reclassification that would create a new class of nonvoting shares, court filings show.  The settlement, which must be approved by a judge, clears the way for the split, which had been on hold while the Delaware case was being litigated. The accord provides enhanced board scrutiny of Page’s and Brin’s requests to amend restrictions on their sales of new Class C shares and on company acquisitions funded by more than 10 million shares of the new stock, according to court filings…

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