Facebook, banks ask judge to throw out lawsuit

Facebook, its chief executive Mark Zuckerberg and dozens of banks asked a federal judge to throw out a lawsuit accusing the social media company of misleading investors about its financial condition before its US$16 billion (HK$124.16 billion) initial public offering a year ago.

The defendants said in court papers that before the IPO last May 18, Facebook had no obligation to publicly disclose internal projections on how increased mobile usage and product decisions might affect future revenue, even if it had provided the projections to its underwriters’ analysts.

via Business feed http://www.scmp.com/business/money/markets-investing/article/1228239/facebook-banks-ask-judge-throw-out-lawsuit