Summary by Futu AI
Snap Inc. has entered into an Amended Stipulation of Settlement to resolve a class action lawsuit initially filed on August 2, 2022, by the City of Warwick and later by the Greater Pennsylvania Carpenters' Pension Fund. The lawsuit alleged that a transaction between Snap's co-founders and the company, which included employment agreements and an amendment to the certificate of incorporation tied to a stock dividend, was not in the best interest of Class A stockholders and breached fiduciary duties. The settlement, which includes an amendment to the terms of a special dividend and the co-founder agreements, was approved by the court on February 26, 2024. Additionally, on May 16, 2024, Snap's board of directors and a majority of voting power holders approved an amendment to the company's Charter in line with the settlement terms. The amendments to the co-founder agreements were made to reflect the new conditions for the special dividend declaration and impose conditions for future amendments.