Four IPO-Related Lawsuits Vs. Facebook Dismissed
While the news from Wall Street earlier this week may not have been good for Facebook, other parts of downtown Manhattan were kind to the social network Wednesday, as U.S. District Judge Robert Sweet dismissed four shareholder lawsuits against the company related to its troubled May 18 initial public offering.
While the news from Wall Street earlier this week may not have been good for Facebook, other parts of downtown Manhattan were kind to the social network Wednesday, as U.S. District Judge Robert Sweet dismissed four shareholder lawsuits against the company related to its troubled May 18 initial public offering.
However, Facebook is not out of the woods yet, as 53 lawsuits were consolidated before Sweet.
Reuters reported that Sweet dismissed the four lawsuits because the individual investors who were plaintiffs were not shareholders in Facebook at the time of the alleged wrongdoing.
Sweet ruled that the plaintiffs had the option of revising the lawsuits and refilling them within 20 days, Reuters reported, adding that, in a good sign for Facebook, the social network “repeatedly made express and extensive warnings” about greater use of mobile applications prior to the IPO, rebuking claims by the plaintiffs that the company did not reveal information to...
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