How did facebook got away from fiduciary lawsuit when they diluted Saverin&#39;s shares?
<p>Saverin eventually settled out of the court, for 5% equity. But why didn't he proceed for his original 30% equity when it was clear that facebooks majority shareholders failed to exercise the fiduciary duty?</p>

<h2>Because he wanted to</h2>

<p>Why he wanted to only he and whoever he's told knows.</p>

<p>An out of court settlement is simply a deal that comes at the end of a negotiation - possibly a long and arduous negotiation. People make deals based on what they think is in their own best interests. This may not be going to court for many years, funding that litigation for an uncertain outcome that <em>might</em> be better than what's on the table right now. Or it might be taking the money and getting on with your life.</p>

shareholders limited-liability-company fiduciary-duties