On March 31, 2021, Saxena White commenced direct class action litigation on behalf of Palantir Technologies Inc. stockholders in the Delaware Court of Chancery against the company and its three founder-directors. The litigation challenged the company’s novel dual-class stock structure, which our client alleged untethered the founder’s voting power from their equity ownership by giving the founders 49.999999% of the vote, irrespective of the amount of stock that they owned.
The parties fully briefed cross motions for summary judgment on Plaintiff’s claims and argued those motions before the Court in late 2021. With the cross motions for summary judgment pending, the parties reached an agreement to settle the action. As part of the settlement, the company agreed to institute important stockholder voting protections and enhance independent-approval and voting requirements for conflicted transactions.
The parties submitted their settlement to the Court on May 13, 2022. The Court granted final approval of the settlement on September 13, 2022.
