Why Facebook is paying $35 million law-suit? - letsdiskuss
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Abdul Malik

News reporter (CEN News ) | Posted on | News-Current-Topics

Why Facebook is paying $35 million law-suit?


Financial analyst (Mudra finance company) | Posted on

Social media giant Facebook is paying $35 million law-suit to settle claims that its officers and directors misled investors in the company’s 2012 Initial Public Offering.

Investors sued Facebook because company's top directors and executives spread the wrong information about company's growth to artificially increase the value of company's Initial Public Offering (IPO) in 2012.

However, Facebook didn't admit any wrongdoing as part of the settlement and their officials stated,

“We believe that resolving this case is in the best interests of the company and our shareholders," Sandeep Solanki, Facebook’s associate general counsel, said in a statement.

As per sources, $35 million is a small fraction amount as compared to Facebook'scurrent market value of roughly $537 billion.

Also read:- How did Facebook lose $6 billion in one day?