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Facebook sued by shareholder again

by on05 March 2013

IPO debacle rears its head again

The stuffed up Facebook IPO has reared its head again as another shareholder has sued the company reviving legal claims that a different court dismissed in February.

Gaye Jones alleges that the company's directors and officers knew that Facebook did not disclose weaker revenue trends as more users accessed the website through mobile devices. The complaint alleges that information had been selectively shared with the company's IPO underwriters and key investors.

While similar lawsuits that were dismissed last month partly because the shareholders did not own the stock when the alleged misconduct took place prior to Facebook's May IPO, Jones has owned Facebook stock since February 2012. The lawsuit wants to force the directors and other defendants to disgorge the money they made from selling stock through the IPO which they allegedly knew was overpriced.

Facebook said in a statement that it believed the lawsuit is without merit and will defend itself vigorously.

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