Brockton, Mass. retirement board sues Google over stock split plan
Brockton retirement board sues Google over stock split plan
BROCKTON —
Brockton’s retirement board is suing Web-search giant Google Inc., claiming the company’s planned stock split would unfairly create nonvoting shares in the California-based company, Bloomberg News has reported.
The Brockton Retirement Board contends that Google officials failed to act in the best interests of shareholders in creating a new class of stock, the news service reported on Monday.
“The reclassification effort is a thinly veiled attempt to entrench” co-founders Larry Page and Sergey Brin “as dominant shareholders of Google by creating a non-voting class of Google stock in order to preserve their voting power into perpetuity,” the Brockton board said in a Delaware Chancery Court complaint made public Monday in Wilmington, Bloomberg reported.
Google now has Class A common shares, which have one vote each, and Class B shares, mostly held by the founders, Bloomberg reported. Under the reclassification, all shareholders will receive a dividend of new, non-voting Class C stock in what amounts to a 2-for-1 stock split, according to the complaint.
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http://www.enterprisenews.com/topstories/x515662790/Brockton-retirement-board-sues-Google-over-stock-split-plan
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