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

Will you subscribe to Telkom’s 100Mbps fibre service if it is available in your area?

View Results

Loading ... Loading ...

More News

Uncapped ADSL throttling and fair use

South Africa slow broadband

Is the honeymoon over for ADSL users who download hundreds of Gigabytes of data every month?

22seven is now free

22seven Old Mutual

Old Mutual-owned personal financial management tool and app, 22seven has announced that it is now available to customers for free.

Cell C store robbed

Criminal cellphone thief

The Cell C store in the Northgate Mall is the latest technology and telecoms outlet to be robbed

Slow ADSL for some Telkom Internet users

Snail slow network cable

Many Telkom Internet service provider users are complaining about poor ADSL performance in KZN

Free MyBroadband Newsletter:
Subscribe
X
bool(true)