From the Game Room to the Board Room – Reconsidering the Independence of Independent Directors
January 4, 2017
Playing a Zynga game often requires patience.
Patience, and persistence, were a winning combination for the plaintiff Thomas Sandys who brought a derivative suit against Zynga for alleged breaches of fiduciary duties after the Zynga Board approved a secondary sale of company stock by insiders, including Zynga’s controlling shareholder and then-CEO (“controlling shareholder/CEO”) during a blackout period. Shortly after the sale, a disappointing earnings announcement resulted in a significant stock price drop.
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