An American Federal judge sentenced two lawsuits against Facebook as an class action. The lawsuits claimed that Facebook concealed the worries about its prospects of future growth before its IPO was made in May, 2012.
“Facebook was brought a class action by individuals and institutional investors who suffered a great loss for Facebook IPO of $16 billion,” said Robert Sweet, the judge from Manhattan.
This verdict was made on December 11 which was strictly confidentail. Sweet announced this verdict on this Tuesday.
The other defendants of these lawsuits are including Facebook CEO, Mark Zuckerberg, its COO Sheryl Sandberg and other seniors.
The class action is in the process of lawsuit. But the company felt such verdict was lack of evidence. It has conflicts with those cases have been duly handled.
Its shareholders claimed that Facebook concealed the inside performance prediction concerned the mobile business before it went on IPO. It did not receive much ad revenue on mobile business then. It affected the prospects of Facebook’s future growth. However, it has notified the consignees in person, indicating the consignees should decrease the prediction.
Facebook became a listed company on May 18, 2012. Its issue price of IPO was $ 38. It decreased to $17.55 by September 4, 2012 and stayed the break state in one year.
Finally, Facebook’s share price increased. Its closed at $102.26 on Tuesday. It means Facebook’s market value reached $303 billion.