Facebook Wins Ruling in Shareholder Case
Facebook Inc., facing multiple shareholder lawsuits related to its botched initial public offering, scored an initial legal victory when a federal judge in New York Wednesday dismissed a group of cases against the social networking company.
Last year, several Facebook investors sued the company, arguing that Facebook — which had shared internal financial forecasts with certain analysts before the IPO — was also obligated to disclose those projections in regulatory filings.
