Facebook IPO disclosure by shareholder class action lawsuit

United States a federal judge recently ruled that, two shareholder lawsuits against Facebook can be defined as a class-action lawsuit. The lawsuit, in May 2012 IPO (initial public offering), Facebook tried to cover up concerns about growth prospects for the future.

Manhattan, United States District Judge luobote·SI Witte (Robert Sweet), Facebook suffered a loss in a 16 billion dollar IPO individual and institutional investors can launched class-action lawsuit against Facebook.

The ruling dated December 11, but had been under wraps. On Tuesday, sweatt discloses the sentence.

The lawsuit's other defendants including Facebook CEO Mark Zuckerberg (Mark Zuckerberg), Chief Operating Officer of xielier·sangdeboge (Sheryl Sandberg) and other executives. Facebook is working on these proceedings is defined as a class-action lawsuit to appeal the decision. The company said those judgments without basis, with some "proper handling" precedent for conflicts.

Shareholders believe that, before the Facebook IPO concealed internal performance expectations about mobile business development, Facebook mobile service did not bring too much advertising revenue. This will affect Facebook's future growth prospects. However, the company told a private underwriter, prompting underwriters lowered expectations.

Facebook May 18, 2012, IPO issue price is $ 38. Until September 4, 2012, Facebook's shares fell to $ 17.55, and has been in more than a year in a break state.

Ultimately, Facebook share prices rebounded, closing price Tuesday of $ 107.26. This means that Facebook is worth $ 303 billion.