A group of putative class action plaintiffs alleging Facebook Inc. violated federal securities law in its May 18 initial public offering will not be remanded to state court because of the 1998 Securities Litigation Uniform Standards Act, a federal district court in California ruled Aug. 23 (Lapin v. Facebook Inc., N.D. Cal., 3:12-cv-03195-MMC, 8/23/12).
Facebook faces multiple putative class actions alleging the company violated securities laws by selectively disclosing information to underwriter analysts who shared their forward-looking forecasts to selected institutional investors.
Those disclosures led the underwriters to lower revenue forecasts for Facebook, and plaintiffs alleged that...
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