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Snap Inc | 8-K: Amended Summary Notice of Pendency and Proposed Settlement of Action

SEC announcement ·  Jan 8 00:00
Summary by Moomoo AI
Snap Inc. has reached a proposed settlement in a class action lawsuit, initially filed on behalf of Class A common stockholders, alleging that a transaction between the company's co-founders and Snap Inc. was not in the stockholders' best interest. The lawsuit, City of Warwick v. Snap Inc. et al., claimed that the transaction, which included employment agreements and an amendment to Snap's certificate of incorporation tied to a stock dividend, constituted a breach of fiduciary duty. On December 19, 2023, the Court of Chancery of the State of Delaware entered a scheduling order for an Amended Stipulation of Compromise and Settlement, which was executed on December 15, 2023. The settlement aims to resolve the disputes and avoid further litigation costs. The...Show More
Snap Inc. has reached a proposed settlement in a class action lawsuit, initially filed on behalf of Class A common stockholders, alleging that a transaction between the company's co-founders and Snap Inc. was not in the stockholders' best interest. The lawsuit, City of Warwick v. Snap Inc. et al., claimed that the transaction, which included employment agreements and an amendment to Snap's certificate of incorporation tied to a stock dividend, constituted a breach of fiduciary duty. On December 19, 2023, the Court of Chancery of the State of Delaware entered a scheduling order for an Amended Stipulation of Compromise and Settlement, which was executed on December 15, 2023. The settlement aims to resolve the disputes and avoid further litigation costs. The Amended Stipulation of Settlement modifies the conditions for declaring a special dividend of Class A common stock, linking it to the 90-Day VWAP meeting certain conditions. The settlement is subject to conditions including stockholder notice and judicial approval, with a fairness hearing scheduled for February 26, 2024. Snap Inc. has filed a Form 8-K with the SEC detailing the settlement and has published a summary notice for stockholders.
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