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October 24, 2018
Brattle Contributes to Agreement on Attorney's Fees in Facebook's Abandoned Share Reclassification Plan

On October 24, 2018, Facebook agreed to pay $68.7 million in attorney’s fees in connection to a shareholder lawsuit over the proposed reclassification of the company’s common stock that was canceled by Facebook’s board of directors last year.

In the litigation phase, Brattle Principal Benjamin Sacks submitted expert reports and testified that if the proposed reclassification had been approved, it would have reduced the value of common stock, thus harming shareholders.

After the proposed reclassification was canceled, counsel for shareholders sought attorney’s fees, arguing that by forcing the company to cancel the reclassification, the lawsuit benefited shareholders. During this phase, Mr. Sacks submitted additional expert reports and testimony regarding the benefits of Facebook’s decision to withdraw the proposed reclassification.

The Brattle team was led by Principal Benjamin Sacks, Senior Associate Fabricio Nunez, and Associate Yingzhen Li.