Facebook is currently facing 31 consolidated lawsuits over its bungled $16 billion IPO last May, and the social media giant and dozens of banks have joined hands in asking a federal judge to throw them all out.
Facebook’s stance: before going public last May 18, “…it had no obligation to publicly disclose internal projections on how increased mobile usage and product decisions might affect future revenue,” reports Reuters. In other words, Facebook thinks the investors collectively suing it are trying to enforce an SEC rule that has been ignored for decades – just because the stock ended up tanking after the IPO. The lawyer representing the plaintiffs has not responded.
