Investors Defend Suit Over Facebook IPO Losses

Law360, New York (October 8, 2013, 6:33 PM EDT) -- Investors on Tuesday urged a federal judge to allow a class action against Facebook Inc. over losses they suffered in its $16 billion initial public offering, arguing that the company kept its underwriters informed about potential problems while misleading the public.

Before Facebook’s May 18, 2012 IPO, the company’s treasurer made 19 calls to underwriters informing them that growing mobile use of the service might hurt future revenue, but did not make the news public, a lawyer for investors told U.S. District Judge Robert W. Sweet...
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