Legal News

Facebook Sued in Relation to IPO
Download PDF

Mark Zuckerberg has been sued by a shareholder of Facebook because of its troubled IPO, according to Reuters.

The suit was filed by Gaye Jones and it claims that the company’s directors and officers knew that Facebook did not disclose weaker revenue trends as the site was accessed by more users on mobile devices. The lawsuit argues that information was shared selectively with the IPO underwriters and key investors.

  
What
Where


Jones has owned stock in the company since February 2012. The lawsuit wants the directors and other defendants to disgorge the money they earned from the sale of the stock through the IPO, which they reportedly knew was overpriced.

“The defendants were unjustly enriched because they realized enormous profits and financial benefits from the IPO, despite knowing that reduced revenue and earnings forecasts for the company had not been publicly disclosed to investors,” said the complaint.

In a statement from Facebook, the company said, “we believe this lawsuit is without merit and will defend ourselves vigorously.”

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Not long after the IPO in May of 2012, over 50 investor lawsuits were filed. In federal court in Manhattan, a proposed class action is being heard.

Jones’ lawsuit was filed in the Court of Chancery in Delaware, which is where Facebook is incorporated. The underwriters of the IPO, units of JPMorgan Chase & Co, Morgan Stanley and Goldman Sachs Group Inc., were all named as defendants in the lawsuit.





 

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Defense Attorney with 3-4 years of litigation experience

USA-CA-San Francisco

San Francisco office of our client seeks defense attorney with 3-4 years of solid litigation experie...

Apply Now

Attorney with 3-7 years of litigation experience

USA-IL-Chicago

Chicago office of our client seeks attorney with 3-7 years of litigation experience. The candidate s...

Apply Now

Mid-level IP Litigation Attorney with electrical engineering experience

USA-CA-San Francisco

San Francisco office of our client seeks mid-level intellectual property attorney with 3-5 years of ...

Apply Now

Labor and Employment Attorney with 3-4 years of litigation experience

USA-CA-Los Angeles

Los Angeles office of our client seeks labor and employment attorney with 3-4 years of litigation ex...

Apply Now

RELEVANT JOBS

Family Law Attorney

USA-LA-Covington

Part-time Family Law Attorney needed for a small Covington Law Firm. Family Law ...

Apply now

Attorney

USA-CA-Ontario

  WE ARE NOT SEEKING A LEGAL SECRETARY OR ASSISTAN...

Apply now

Associate Attorney

USA-WA-Bellevue

Small firm in Bellevue with focus on family law is seeking an Associate attorney. Three years of exp...

Apply now

Full-time Legal Assistant

USA-CA-Los Angeles

Small but fast-paced plaintiff litigation law firm is seeking an energetic and motivated person as a...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top