This week, Judge Sweet granted the motion for class certification as part of the ongoing multi-district litigation over Facebook’s alleged negligent misstatements or omissions surrounding its 2012 IPO. Central to the litigation are calls made by Facebook’s treasurer to underwriter analysts to revise revenue projections downward, and the extent that this information spread through the investment community prior to the IPO. Judge Sweet certified a class of all persons who purchased Facebook stock during or traceable to the IPO on May 17, 2012, with two subclasses for institutional and individual/retail investors.
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Judge Sweet Denies Facebook’s Motion to Dismiss Federal Securities Claims
In an opinion filed last week but just posted to the ECF docket this morning, Judge Sweet denied the motion of Facebook and its underwriter banks to dismiss federal securities claims arising from the May 2012 Facebook IPO. Noting specifically that the complaint does not allege securities fraud, Judge Sweet permitted the class action complaint of violations of other sections of the securities laws to go forward.
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Judge Sweet Dismisses Some, but Not All, Claims Against NASDAQ in Facebook IPO Suit
In a decision last week, Judge Sweet ruled that the self-regulatory organization (“SRO”) immunity applied to bar some of the claims brought against the NASDAQ stock exchange in the consolidated In re Facebook IPO litigation. Judge Sweet’s opinion in essence divided the claims between those that preceded the IPO and those that occurred during and after the IPO, holding the SRO immunity did not shield the NASDAQ for pre-IPO-based claims.
Continue Reading Judge Sweet Dismisses Some, but Not All, Claims Against NASDAQ in Facebook IPO Suit