Palantir Technologies

Company Name:

Investigation on Behalf of Minority Shareholders of Palantir Technolgies

In mid-July 2020, Palantir filed a prospectus with the U.S. Securities and Exchange Commission (“SEC”) to launch a direct listing (the “Direct Listing”). See "Palantir Files Confidential Plans for Long-Awaited IPO," Forbes, July 2, 2020.

Previously undisclosed facts about the anticipated Direct Listing began emerging around August 21, 2020. These facts revealed, for the first time, that the founders of Palantir, with the help of a group of three newly appointed and non-independent directors, had passed resolutions to increase and perpetuate their control over the Company through the issuance of a new class of supervoting stock (the “Class F Proposal”). Because this class would at all times control 49.999999% of the vote in the Company, the founders will be able liquidate their substantial holdings in the Company while at the same time retaining control over the Company for their lifetime. The insiders’ conduct, set in motion immediately prior to the Direct Listing, represents a breach of their fiduciary duties and threatens substantial harm to the Company’s existing shareholders. Among other things, the insiders’ scheme seeks to allow them to gain control of the company without regard to their economic stake in the company, while at the same time allowing them to liquidate a large percentage of their stock in the Direct Listing, while providing no similar opportunity to the Company’s existing minority shareholders. The issuance of the new Class F stock is set to occur shortly before the effectiveness of the Registration Statement relating to the Direct Listing.

Palantir has also come under scrutiny for its controversial work with Immigration Customs Enforcement in the U.S. Palantire has been criticized for furnishing the agency with tools to locate and remove illegal immigrants.

If you are a shareholder of Palantir Technologies, your interests as a stockholder in the Company are threatened by the upcoming Direct Listing. If you would like more information about your rights as a shareholder, please contact us at (858) 914-2001 or by email at fab@bottinilaw.com