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Facebook to face shareholder class actions over IPO

Shareholders had accused Facebook of concealing info on how growth in mobile devices might hurt its prospects, even as it quietly warned underwriters to cut their forecasts

Reuters  |  New York 

A federal judge has certified two shareholder class actions accusing Facebook of hiding concerns about its growth forecasts prior to the social media company's May 2012 initial public offering (IPO). U.S. District Judge Robert Sweet in Manhattan said retail and institutional investors who claimed to lose money from buying Facebook shares at inflated prices in connection with the $16 billion IPO may pursue their respective claims as groups. The decision is dated December 11 but had been kept under seal, which Sweet lifted in an order made public on Tuesday. Other Facebook ...

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First Published: Wed, December 30 2015. 06:15 IST