A Facebook (FB – Get Report) shareholder filed a proposal for a class action lawsuit on Friday in an attempt to halt the social media company’s plan to issue new Class C stock, Reuters reports.

The shareholder says the deal is unfair and designed to establish CEO Mark Zuckerberg as the company’s controlling shareholder.

The lawsuit was filed on the Delaware Court of Chancery, Reuters added. The move came after Facebook on Wednesday announced its latest financial results and the plan to issue the new stock.

“This proposal is designed to create a capital structure that will, among other things, allow us to remain focused on Mr. Zuckerberg’s long-term vision for our company and encourage Mr. Zuckerberg to remain in an active leadership role at Facebook,” the company said.

The lawsuit argues that in approving the plan Facebook’s board “did not bargain hard” with the CEO in order to “obtain anything of meaningful value” in exchange for giving Zuckerberg more control, Reuters noted.

Shares of Facebook are up by 0.30% to $117.93 in pre-market trading on Monday morning.

Facebook is a part of Jim Cramer’s charitable trust Action Alerts PLUS. Cramer and AAP Research Director Jack Mohr upped their price target on Facebook today. Here is what Cramer and Mohr had to say:

Raised price target to $145 from $130 following the company’s blowout earnings report last week. Our new valuation of $145 a share reflects about 30x next year’s EPS (we view $4.80 a share as fair) which, considering the 40% year-over-year growth, implies a price-to-earnings-growth (PEG) multiple of 0.75x — this would still be the lowest across the entire large- cap tech space.

-Jim Cramer and Jack Mohr “Portfolio Changes: Let’s Review” Originally Published on May 2, 2016 on Action Alerts PLUS.

Separately, TheStreet Ratings has set a “buy” rating and a score of A- on Facebook stock. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that TheStreet Ratings covers.

The company’s strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. TheStreet Ratings feels its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

TheStreet Ratings objectively rated this stock according to its “risk-adjusted” total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer’s view or that of this articles’s author.

Please visit the source link below to view the full analysis from the report here.