Tag Archives: lawsuit

Shareholders Sue Facebook, Zuckerberg and Banks Over Botched IPO

In a lawsuit seeking class action status, filed in the U.S. District Court in Manhattan, Facebook shareholders are suing the company, co-founder and CEO Mark Zuckerberg and several banks including lead underwriter Morgan Stanley.

The lawsuit claims shareholders were duped by the hiding of Facebook’s weakened growth forecasts.

Write Reuters’ Dan Levine and Jonathan Stempel:

The defendants were accused of concealing from investors during the IPO marketing process “a severe and pronounced reduction” in Facebook revenue growth forecasts, resulting from increased use of its app or website through mobile devices.

via thenextweb.com