A new lawsuit filed by a Facebook shareholder claims that the corporate knew about downward trends in revenue tied to increased user defection to mobile from desktop use.
Gaye Jones says that such information was shared with key investors.
“The defendants were unjustly enriched because they realized enormous profits and monetary benefits from the IPO, despite knowing that reduced revenue and earnings forecasts for the corporate had not been publicly disclosed to investors,” says the lawsuit.
This is unquestionably not the 1st time that a lawsuit have been filed with a virtually identical claim.
Soon after Facebook’s stock price started to plummet, a flood of lawsuits poured in accusing Facebook of concealing severe reductions in revenue growth because of the increase in mobile users and Facebook’s perceived inability to monetize mobile.
So, new lawsuit, similar complaint.
Jones’ new lawsuit is a spinoff suit, because of this the investor “seeks to step into the shoes of the corporate and any money recovered from Zuckerberg and others could be paid to Facebook, not shareholders.”
Four previous derivative suits were dismissed after a U.S. District Judge ruled that the shareholders didn’t own stock when Facebook allegedly deceived them before the IPO. Plus, he said that Facebook indeed “repeatedly made express and extensive warnings” in regards to the trend toward mobile. Therefore, Jones did actually own Facebook stock since February 2012, months before the IPO filing in May.
Back in January, Facebook stock rode an upward trend and topped $30 for the primary time in nearly six months. As of immediately, the worth sits at just over $27.50.
[Reuters]
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