Boston, MA 12/20/2013 (wallstreetpr) – Facebook Inc (NASDAQ:FB), it appears to have some legal trouble, post its IPO offering. Robert Sweet, a District Judge has ruled that the top-management of the social media platform will now have to deal with investor lawsuits. The three accused include the CEO Mark Zuckerber, COO Sheryl Sandberg, besides three bank- Morgan Stanley, Goldman Sachs as well as JPMorgan. Included in the list of institutions that will face legal action will include NASDAQ, for the technical glitches the company faced during the launch of the IPO.
Judge Sweet says revenue warnings concealed
Facebook Inc (NASDAQ:FB) it has been now pointed out as a result of the lawsuit, that the social media website had not revealed a revenue warning at the time of presenting its IPO, back in May 2012. The act of concealment of facts has attracted the legal action now. Facebook during the process of being listed on NASDAQ had not revealed that the revenue cuts were already in the process and would materialize. Instead the company, had presented that there would be likely revenue cuts. Incidentally, Facebook had provided this information to underwriters for further analysis.
On other operational fronts, Facebook has rolled out video advertisements. Besides, it has now added to its portfolio, acquiring SportStream, a new company which on a basic level handles content for social media management specifically for sports companies as well as media companies.
Facebook Inc (NASDAQ:FB) new acquisition could now well include SporStreams’ services which allow social media activity for a client and will rely nearly entirely on metrics and insights gained from Facebook as well as APIs.
Noticeably social media platforms are keen on promoting higher engagement by providing tools which will help them to monitor and analyse the users connected on their Facebook account. This will in turn help Facebook to introduce more revenue-earning ads.
