Another IPO-Related Lawsuit Filed Vs. Facebook
Facebook’s recent string of court victories will be tested by yet another lawsuit related to its bungled May 18 initial public offering, this one filed by shareholder Gaye Jones.
Facebook’s recent string of court victories will be tested by yet another lawsuit related to its bungled May 18 initial public offering, this one filed by shareholder Gaye Jones.
Reuters reported that Jones’ lawsuit alleged that Facebook’s directors knew that the company did not disclose weaker revenue trends related to expanding mobile use of the social network, adding that such information was selective shared only with underwriters and key investors.
According to Reuters, the suit by Jones stated:
The defendants were unjustly enriched because they realized enormous profits and financial benefits from the IPO, despite knowing that reduced revenue and earnings forecasts for the company had not been publicly disclosed to investors.
Reuters
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