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Facebook Must Defend IPO-Related Shareholder Class Actions
- U.S. judge rules investors may sue as a group over 2012 IPO
- Company accused of hiding concerns about future growth
Facebook Faces Class Action Lawsuit
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Facebook Inc. must face group claims by investors that the company misled them about its financial condition in the run-up to its May 2012 initial public offering, a judge ruled.
U.S. District Judge Robert Sweet in Manhattan certified two sets of cases as group lawsuits, allowing investors to sue collectively, in an opinion dated Dec. 11 and made public Wednesday. The decision makes it easier for retail and institutional investors to recover on claims that may not have been worthwhile to pursue individually.