Facebook facing lawsuit from IPO investors

Investors file lawsuit against Facebook after failing to disclose IPO information

June 5, 2012
Nasdaq Facebook

Facebook is set to face a lawsuit from investors after the social network company initiated its public offering on 18 May 2012.

The disgruntled investors claim that the company was “selectively disclosing” certain information and material regarding the revenue outlook of the business.

The claim states that an underwriter told major clients that the company was reducing its revenue forecast, although this was not conveyed to smaller investors.

In response to the legal action, a Facebook spokesperson said, “We believe the lawsuit is without merit and will defend ourselves vigorously.”

This is the second lawsuit against Facebook, claiming that the company had failed to portray the forecast reduction of revenue.

Source: Cnet

Tags: Facbook IPO, facebook, Facebook lawsuit

Free Email Newsletter:
Subscribe

Shutterstock is the image partner of MyBroadband – technology images can be found here

Join the conversation

Connect with MyBB

twitterfacebookandroidappleblackberrynewsletterfeed

Poll

Do you think South Africa should invest heavily in solar power instead of coal fuelled power stations?

View Results

Loading ... Loading ...

More News

Can a hacker stop your car?

Hacker

There needs to be a concerted effort to improve security of future devices. Privacy, health and safety can be compromised by increased connectivity

BlackBerry Q20 Classic pre-orders open

BlackBerry Classic (Q20)

BlackBerry has opened pre-orders for the BlackBerry Classic in five countries, and pre-registrations elsewhere

Best tech deals and early Christmas specials

Sale

This weekend you can save money on a curved TV, a UHD TV, Windows tablets, and a wide range of other gadgets and tech products

Eskom load shedding whole weekend

Eskom light

Eskom has confirmed that it has gone from stage 1 to stage 2 loadshedding, and that it will be ongoing all weekend

Free MyBroadband Newsletter:
Subscribe
X
bool(true)