SOCIAL ADVERTISING NETWORK Facebook ain't gonna sit around and let two class action lawsuits from shareholders roll on and will appeal against them.
The firm is reacting to the latest bend in two cases that have seen money people accuse it of not being wholly honest in its information when it carried out its eye watering IPO.
According to a report on Reuters the social network has had its face slapped by US district judge Robert Sweet in Manhattan, who agreed and ruled that frustrated investors could take current claims and lump them together as a class action.
"We are disappointed with the decision, and have already filed an appeal," said Facebook in a statement. "We believe the class certification is without merit and conflicts with well-settled Supreme Court and Second Circuit law."
According to the judge, this is such a big deal that it can sustain two cases. While he could see that Facebook had been open about its economics, there are some grey areas.
He rejected the Facebook notion that shareholders should raise cases individually, adding, according to Reuters, that allowing two subclasses "adds more weight to the predominance of common questions and answers, practically negating the individualised questions raised".
Facebook completed its $16bn IPO in spring 2012 and was almost immediately accused of hiding weak growth prospects. The IPO did not run particularly smoothly, and some investors were miffed that they lost money on the deal. Shares dropped by 18 percent in the first week.
Facebook business is good, but the firm struggles with its public perception. Most recently it has courted controversy by offering India internet, with some conditions, while an apparently benevolent act by billionaire Mark Zuckerberg was swallowed with a large dose of cynicism. These controversies have not been eased by revelations about how the firm plays the UK tax game. µ
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