Facebook Inc. (FB) Secures an IPO Court Win

Facebook Inc. (NASDAQ:FB) and NASDAQ have been uneasy allies in a courtroom in New York, as the two entities have been working through more than a dozen lawsuits that devolved from the botched IPO last May. The same federal judge is handling all of the cases, and he has made a couple of initial rulings to start the process of working through the maze of lawsuits.

Facebook Inc. (NASDAQ:FB) was able to win a victory against a group of shareholders, who claimed that Facebook executives like CEO Mark Zuckerberg and others failed to disclose some key information about the company at the time of the IPO, which affected these investors’ positions. The claim was that these executives did not inform everyone about the company’s risks in mobile advertising. However, Judge Robert Sweet dismissed the case by the investors, saying that the three investors bought their shares on the day of the IPO, which was sufficiently after Facebook had submitted several amendments to its IPO filing, and the company’s uncertainty about mobile monetization was mentioned in those amendments.

Facebook Inc (NASDAQ:FB)The investors – listed as William Cole, Hal Hubuschman and Linda Levy – also claimed that media reports released suggested that Facebook Inc. (NASDAQ:FB) had given certain information to analysts and a hand-picked group of investors. But Judge Sweet rejected that notion as well, saying that while the information might have been pertinent to the IPO, the plaintiffs could not prove that the information  “significantly altered the total mix of information in the marketplace.”

What do you think? Should Facebook Inc. (NASDAQ:FB) avoid accountability for what happened with the IPO, or how do you think Facebook was involved in its own problems with its offering? We’d like your thoughts in the comments section below.

DISCLOSURE: I own no positions in any stock mentioned.

Please see these related FB articles:

Facebook Among Those Winning the Future

Will Atlas Be Shrugged in Advertising?

Is Facebook Losing Its Cool?

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!