Update: U.S. District Judge Robert Sweet also refused to dismiss claims against the Facebook defendants and the underwriters of its IPO. In his Dec. 12 ruling, which was made public late Tuesday, Sweet concluded that Facebook’s executives were negligent and made material misrepresentations in its registration filings with the U.S. Securities and Exchange Commission by stating that mobile phone use would impair the company’s projected advertising revenues when, in fact, it already had. Such “generalized and indefinite terms,” he wrote, “fail to constitute sufficient disclosure.” A Facebook spokesperson said, “We continue to believe this suit lacks merit and look forward to a full airing of the facts.”
Shareholder claims against Nasdaq OMX Group Inc. over Facebook Inc.’s botched IPO will move forward after a federal judge found that the exchange was not immune from liability over the technical glitches that occurred that day.
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