Suits: Facebook sets up IPO-mess defence
Facebook’s stock leapt 6% on Friday to end above $30 for the first time since May 25.
NEW YORK:
Facebook is facing a raft of lawsuits from investors seeking to recoup losses from its botched initial public offering (IPO), laid out on Friday how cascading Nasdaq trading glitches might have stoked the confusion that marred its May 18 debut. The social networking site and lead underwriters Morgan Stanley, Goldman Sachs and JPMorgan have filed a motion requesting that the shareholder lawsuits over its $16 billion IPO be grouped together in Manhattan federal court. The filing gives a glimpse at how Facebook may choose to structure its defense and represent the company’s first public response to the chaos that engulfed its high-profile debut. In the motion filed Thursday, Facebook defended its pre-IPO disclosures on mobile user revenue growth. The motion cited reports that Facebook had told underwriters about lowered revenue forecasts but not amended its prospectus. Facebook’s stock leapt 6% on Friday to end above $30 for the first time since May 25.
Published In The Express Tribune, June 17th, 2012.
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