Judge throws out some Facebook IPO lawsuits
NEW YORK, N.Y. - A New York judge is dismissing a key group of the many lawsuits against Facebook over its initial public offering in May, saying the plaintiffs did not show that they lost money because of corporate wrongdoing.
In the Wednesday ruling, Judge Robert Sweet of the U.S. District Court for the Southern District of New York also agreed with Facebook's claims that the plaintiffs could not prove that they owned Facebook stock at the time of the alleged wrongdoing.
The lawsuits and other still remaining alleged that analysts at large underwriting investment banks cut their financial forecasts for Facebook just before the IPO and told only a handful of clients. Facebook and the banks say nothing about its process was illegal.
Facebook says it is pleased with the ruling.
Latest Tech Galleries
Before the advent of agriculture 10,000 years ago, humans got their food by hunting, gathering, and fishing. Scientists are turning to these ancient me... More Before the advent of agriculture 10,000 years ago, humans got their food by hunting, gathering, and fishing. Scientists are turning to these ancient methods of subsistence for insights into how we can feed our growing global population in years to come—without overwhelming the planet. In its September 2014 issue, National Geographic magazine explores the evolution of the human diet across a wide spectrum of cultures: http://www.nationalgeographic.com/foodfeatures/evolution-of-diet/ By 2050 we'll need to feed two billion more people. Click here for a special eight-month series exploring how we can do that—without overwhelming the planet: http://food.nationalgeographic.com.
Date 15 hrs ago, Duration 1:19, Views 138