Facebook and dozens of banks have requested a US federal judge throw out the lawsuit over the company’s alleged misleading of investors in the build up to its initial public offering (IPO) last year.
In court papers submitted this week, Reuters reports Facebook chief executive officer (CEO) Mark Zuckerberg has teamed up with banks in claiming Facebook had no obligation to disclose internal projections prior to the US$16 billion IPO last May.
The defendants – which include lead underwriter Morgan Stanley – said the US Securities and Exchange Commission “consistently” refused to require disclosure.
“Plaintiffs would have this court impose – retroactively – a rile which the SEC has for decades thoughtfully rejected,” the papers read, according to Reuters. “This court should decline the invitation.”
