Reuters reports that Facebook and banks including Morgan
Stanley were sued by the social networking leader's shareholders, who claimed
the defendants hid Facebook's weakened growth forecasts ahead of its $16
billion initial public offering.
The defendants, who also include Facebook Chief Executive
Officer Mark Zuckerberg, were accused of concealing from investors during the
IPO marketing process "a severe and pronounced reduction" in revenue
growth forecasts, resulting from increased use of its app or website through
mobile devices. Facebook went public last week.
The lawsuit was filed in U.S. District Court in Manhattan on
Wednesday, according to a law firm for the plaintiffs. A day earlier, a similar
lawsuit by a different investor was filed in a California state court,
according to a law firm involved in that case….
No comments:
Post a Comment