Audio By Carbonatix
Facebook Inc. agreed to pay $35 million to settle claims that its officers and directors misled investors in the company’s 2012 initial public offering.
Facebook didn’t admit wrongdoing as part of the settlement, which was made public in a court filing Monday. The lead plaintiffs in the class-action lawsuit -- public pensions for Arkansas teachers and for workers in Fresno, California -- asked U.S. District Judge Robert Sweet in Manhattan to approve the accord.
Investors sued the social media network in the wake of its IPO, claiming the Menlo Park, California-based company and its executives overstated the prospects for earnings and growth for the mobile market before the IPO and artificially inflated the value of the company’s shares. Sweet ordered the case to proceed as a group suit in 2015.
“We believe that resolving this case is in the best interests of the company and our shareholders," Sandeep Solanki, Facebook’s associate general counsel, said in a statement.
The plaintiffs said in a notice to class members that they agreed to resolve the claims in return for a "substantial certain cash benefit."
Nasdaq OMX Group Inc. agreed to pay $26.5 million in May 2015 to resolve investors’ claims that it mishandled the IPO.
Brokers claimed they lost hundreds of millions of dollars after a design flaw in Nasdaq’s software delayed the stock’s open and left them confused about whether they owned shares.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Latest Stories
-
ECG to cut power in parts of Accra West on February 11 for planned maintenance
18 minutes -
BoG announces guidelines to govern foreign exchange spot interventions
42 minutes -
Intelligence report uncovers weapons transfers under Sudanese Army oversight to South Kordofan
58 minutes -
119 people died during mediation efforts in Bawku conflict – Mahama
58 minutes -
Trade Ministry to lead raw material expansion for 24-hour production, youth jobs & exports
1 hour -
Migration induced by coastal erosion: The Shama experience
1 hour -
Ghana’s economy to expand by 5.67% in 2026
1 hour -
A/R: ECG surcharges over 2,200 customers for illegal connections, recovers over GH¢4.3bn in 2025
1 hour -
With galamsey still ongoing, who is buying the gold? – Oppong Nkrumah questions gov’t
2 hours -
Avoiding Fiscal Risks in GCR’s deal with GoldBod
2 hours -
Suame Interchange won’t affect NPP votes in Ashanti – Asenso-Boakye
2 hours -
Mahama receives Transition Committee report on UGMC transfer to University of Ghana
2 hours -
Quiz Talk National STEM Programme instituted to boost innovation in basic schools
2 hours -
Unemployed graduates with disabilities engage Gender Minister on jobs and inclusion
2 hours -
Parliament approves GH¢2.9bn for Ghana Medical Trust Fund
2 hours
