A Massachusetts public pension fund has filed a lawsuit in the Delaware Court of Chancery against Internet search engine Google and its board of directors. The suit alleges that the company’s recently proposed 2-for-1 stock split is merely a scheme by the company’s founders, Larry Page and Sergey Brin, to preserve their voting power by creating a nonvoting class of stock they can issue without reducing their voting shares.
Brockton Retirement Board, the pension fund for all city employees in Brockton, Mass., and a Google shareholder filed the lawsuit on Monday. The suit alleges that Google’s board breached its fiduciary duties by approving the proposed stock split. Page, who is the company’s current CEO, and Brin, who oversees special projects for the company, were both named as individual defendants along with other members of Google’s board.
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