Briefs: Facebook IPO leads to lawsuits | May 30, 2012 | Almanac | Almanac Online |


News - May 30, 2012

Briefs: Facebook IPO leads to lawsuits

by Sandy Brundage

The anticipation over Facebook's May 18 IPO quickly nosedived into dissatisfaction, judging by the multiple class action lawsuits the social networking company now faces.

The suits allege that Facebook provided false and misleading statements in documents filed with the Securities Exchange Commission and made available to the public prior to the stock offering. In addition, according to the lawsuits, the company allegedly gave a private heads-up to lead underwriters, including Morgan Stanley and Goldman Sachs, who then decreased their revenue projections. The lawsuits allege that the underwriters told a handful of select investors about the change, but not the public.

The class action suits, two of which were filed in San Mateo Superior Court, call for compensatory damages. Case management conferences have been scheduled for July 25 and Oct. 4.

Facebook's stock continued to decline as news of the lawsuits circulated. By Friday the price had dropped to $31.75 per share, after opening on May 18 at $42.05 on NASDAQ.

May 29: Final hearing on Facebook expansion

Bucking its trend of taking Tuesday night off after a holiday weekend, the Menlo Park City Council convenes on May 29 to review the final environmental impact report for Facebook's planned campus expansion.

The report examines the potential community effects of Facebook's plan to hire up to 6,600 employees at its 1 Hacker Way "East" campus and make improvements to all its properties, including those on the Constitution Drive "West" campus. The report also proposes mitigations for traffic and other concerns.

The Planning Commission voted unanimously on May 7 to certify and forward the report and associated documents to the council for approval.

The regular meeting starts at 7 p.m., following a closed session to discuss unidentified potential litigation at 6 p.m., in council chambers at the Civic Center at 701 Laurel St.


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