A number of lawsuits
leveled at Facebook Inc(NASDAQ:FB) in the wake of its catastrophic flotation on
the Nasdaq are to be merged into a single case and heard by a judge in New
York.
As per Reuters, a panel
of federal judges has ordered that the cases be transferred to US District
Judge, Robert Sweet in Manhattan.
This was in spite some
claims made by people arguing their cases must be heard in the jurisdictions
where the cases where initially filed. V3 had contacted Facebook for commenting
on this update but did not receive any reply at that time.
The problems circle
around a number of issues that started with Facebook’s floatation, after it
said that people in financial institutions were handed over inside information on
Facebook’s figures that were kept secret from other investors.
Issues around the
company’s mobile offerings have also seen poise in Facebook’s future financial performances
falter, a problem that even Mark Zuckerberg has admitted of having overlooked
for long.
The news comes at a
time when Facebook has announced that it has exceeded the milestone of one
billion users, a remarkable moment in the growth of the company as it continues
to revamp investor confidence in its brand.
Nearly a tenth of all
members of the site were found have fake and spam accounts earlier this year, probably
diluting the truth of the one billion figure.
With over $2 billion of
investors’ money vanishing since Facebook shares went on sale, it makes sense
why so many investors are angry. Some experts, however, argue that the publicly
available information should have served the purpose of warning the investors. The
trouble that firms like Facebook have in making money from mobile phones, in
which ads are difficult to install, have been well-known.
For now, Facebook seems
to be in a decent position, with nearly 50 lawsuits consolidated into a single
one.
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