Google Class C Stock

Google has settled a shareholder lawsuit which will allow the company to issue a new Class C share. Since its IPO, Google has had Class A shares, held primarily by public shareholders and have one vote per share, and Class B shares, held by founders Sergey Brin and Larry Page, with 10 votes per share. The new Class C shares will have no vote. The agreement requires Google to give Class C shareholders a stock or cash payment if the Class C share price differs more than one percent from the Class A share price. Co-founders Brin and Page will also be required to sell Class B shares if they sell any Class C shares. This ensures that the duo will not increase their control of Google any more than it already is.