A last-minute settlement between Meta Platforms (META.O) and its investors ended an $8 billion lawsuit, preventing Mark Zuckerberg from testifying about Facebook’s data breaches. It also eased pressure on the state of Delaware, which had become a target of criticism from the tech and business world.
As the second day of the trial in Delaware court was about to begin, the investors’ lawyers announced that a settlement had been reached.
Although details are still unclear, this agreement ended a lawsuit that could lead companies to begin leaving Delaware as their legal headquarters. For the past year, Elon Musk and other business leaders have criticized Delaware courts, arguing that they issue rulings that make it easier to sue corporate boards of directors. Musk has encouraged companies to leave Delaware, and this year, major companies like Dropbox, Trump Media & Technology, Roblox, and Simon Property Group have moved to other states in the “Dexit” movement. Critics claim that Delaware courts are biased against company founders. The Meta case was also at the center of this debate, as the 11 defendants included names like Zuckerberg, Sheryl Sandberg, Marc Andreessen, and Peter Thiel. The decision in the case could directly affect the court’s reputation. **(The text is incomplete and unclear)** **(The text is incomplete and unclear)** **(The text is incomplete and unclear)** **(The text is incomplete and unclear)** … Investors had demanded that the defendants use their personal wealth to cover Facebook’s $8 billion legal costs. Meta and other parties in the lawsuit did not respond to requests for comment. Meta founder Zuckerberg was a key figure in the lawsuit. Andreessen Horowitz also announced its decision to move its Delaware company incorporation to Nevada and recommended the same to other companies. Policy changes in the state of Delaware aimed to prevent Meta and other companies from leaving the state. However, some companies still chose to withdraw because they were uncertain about how the new regulations would be interpreted by the courts.Lawrence Cunningham stated that the Meta investors’ settlement demonstrated the Delaware court’s success in resolving complex cases. “This was a highly desirable judicial outcome,” he said.
