The InfoStride Forum

TECHNOLOGY => Computing and Internet => Topic started by: ReadWrite on May 01, 2013, 07:31 PM

Title: Facebook - And Dozens Of Banks - Ask Court To Throw Out IPO Lawsuits
Post by: ReadWrite on May 01, 2013, 07:31 PM
(http://readwrite.com/files/styles/800_450sc/public/fields/RWNow_blue.jpg) Facebook is currently facing 31 consolidated lawsuits over its bungled $16 billion IPO last May (http://en.wikipedia.org/wiki/Initial_public_offering_of_Facebook), and the social media giant and dozens of banks have joined hands in asking a federal judge to throw them all out.

Facebook's stance: before going public last May 18, "...it had no obligation to publicly disclose internal projections on how increased mobile usage and product decisions might affect future revenue," reports Reuters (http://www.reuters.com/article/2013/05/01/facebook-ipo-lawsuit-idUSL2N0DI0LS20130501). In other words, Facebook thinks the investors collectively suing it are trying to enforce an SEC rule that has been ignored for decades - just because the stock ended up tanking after the IPO. The lawyer representing the plaintiffs has not responded.

Via: ReadWrite