Facebook defeats shareholder litigation over IPO

Reuters News
Posted: Jul 24, 2015 9:47 AM

NEW YORK (Reuters) - A federal appeals court on Friday upheld the dismissal of litigation by Facebook Inc shareholders who accused officials at the social media company of deceiving them about its growth prospects prior to its 2012 initial public offering.

By a 3-0 vote, the 2nd U.S. Circuit Court of Appeals said the plaintiffs could not prevail because they failed to show they owned Facebook stock at the time of the alleged misconduct.

The decision affirmed the February 2013 dismissal of the case by U.S. District Judge Robert Sweet in Manhattan.

(Reporting by Jonathan Stempel in New York; Editing by Chizu Nomiyama)