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Facebook Shareholder files new lawsuit

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Facebook Shareholder files new lawsuit

Reuters is reporting that a new IPO lawsuit has been filed against the huge social networking site owned by Mark Zuckerberg and the company's underwriters today. The lawsuit was filed by investor Gaye Jones. Just like many other investors who have filed lawsuits, Jones claims that Zuckerberg knew about the weak money before the IPO, but did not let anyone know about it. Hundreds of legal battles have stemmed from the $16 billion dollar IPO last May.

The stock opened up at $38 a share, but continued to fall in the weeks and months after. All defendants said the same thing that they were not told in the days leading up to the IPO that face books revenues were dropping steadily.

U.S. District Judge Robert Sweet, was originally assigned 42 cases against Facebook, but then last month he ruled in favor of Facebook stating that Facebook was under no obligation to release this information.

The only difference between Jones lawsuit and the others according to Reuters was that Jones had already owned stock in the company since 2012, while the others did not.

A spokesperson for Facebook said that the lawsuit would not hold up in court and that Facebook will defend themselves until the end.

On The Web:

http://news.cnet.com/8301-1023_3-57572504-93/facebook-served-new-lawsuit-over-bungled-ipo/

http://myfox8.com/2013/03/05/new-facebook-lawsuit-filed-by-shareholder/
[caption id="attachment_62963" align="alignright" width="400"]Facebook Shareholder files new lawsuit Facebook Shareholder files new lawsuit
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Jim K is a Toronto based writer, and has been writing full-time for eCanadNow since May of 2005, covering Canadian topics and world issues. Prior to his work writing and editing for eCanadaNow, he worked in sales and marketing. In addition to his work at eCanadNow, Jim has contributed to several other sites, mainly in entertainment feild. You can email Jim at {jim at ecanadanow.com]

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