Facebook hit with lawsuit over plan to issue new stock

Facebook CEO Mark Zuckerberg holds a pair of the touch controllers for the Oculus Rift virtual reality headsets on stage during the Facebook F8 conference in San Francisco, California April 12, 2016. REUTERS/Stephen Lam

SAN FRANCISCO: A Facebook Inc shareholder filed a proposed class action lawsuit in a bid to stop the company's plan to issue new Class C stock, calling the move an unfair deal to entrench chief executive Mark Zuckerberg as controlling shareholder. 

The lawsuit, filed in the Delaware Court of Chancery, followed the social networking company's announcement on April 27 of its plan to issue the shares.