The Upload: Your tech news briefing for Monday, July 27
Facebook prevails in shareholder lawsuit over IPO
You have to own stock to participate in a shareholder class action lawsuit, an appeals court has ruled, confirming an earlier Manhattan district court ruling. The case brought by Facebook shareholders accused the company of withholding key financial information from the public until after its IPO. Circuit Judge Dennis Jacobs said that because the shareholders weren’t owners of Facebook stock at the time the sales information wasn’t disclosed, they had no legal standing to sue.