Facebook, Banks Urge Judge To Dismiss IPO-Related Lawsuit

Facebook and its co-defendants -- banks including Morgan Stanley, the lead underwriter of its initial public offering -- are seeking dismissal of a lawsuit on the grounds that the social network had no obligation to publicly disclose internal projections on how increased mobile usage and product decisions might affect future revenue.

Don’t miss Commerceweek, February 28–29 in NYC, to explore the technology and trends fueling commerce. Get strategic insights from leaders at The New York Times Advertising, Turo, TikTok and more. Register.

Facebook and its co-defendants — banks including Morgan Stanley, the lead underwriter of its initial public offering — are seeking dismissal of a lawsuit on the grounds that the social network had no obligation to publicly disclose internal projections on how increased mobile usage and product decisions might affect future revenue.

According to Reuters, the suit accused Facebook and the banks of misleading investors about the company’s financial condition in the days prior to its IPO last May 18.

Reuters

AW+

WORK SMARTER - LEARN, GROW AND BE INSPIRED.

Subscribe today!

To Read the Full Story Become an Adweek+ Subscriber

View Subscription Options

Already a member? Sign in