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Facebook class action lawsuits to go ahead
http://www.bbc.com/news/business-35196706Facebook class action lawsuits to go ahead
4 hours ago
Two US class action lawsuits against Facebook by shareholders alleging it hid growth concerns ahead of its 2012 public listing can now go ahead. A federal judge certified the legal proceedings, Reuters reports, saying investors who claim they lost money could pursue their claims as groups.
Facebook told the BBC that it was disappointed with the decision and it has launched an appeal against it.
The firm's initial public offering (IPO) in May 2012 raised $16bn (£10bn).
The investors say that by purchasing the firm's shares at inflated prices they lost money. That year, its shares began trading on 18 May in New York at $38 per share, but the price fell to almost half the amount of $17.55 on 4 September.
(snip)
Investors claim that Facebook omitted information about revised revenue projections and the impact that increased mobile usage, at a time when there was little advertising on mobile devices, would have on its revenues.
(snip)