Facebook (FB) Says SEC Didn't Require Certain Disclosures Into Bungled IPO
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Facebook (Nasdaq: FB) is lower heading into the social media giant's first-quarter 2013 earnings report, which is expected out after the market. May should prove to be a big month for Facebook, as we also are approaching the first anniversary of the company going public.
Currently, Facebook and about a dozen banks are requesting that a lawsuit be thrown out which accuses the company of "misleading" investors about its financial condition ahead of the IPO. According to Reuters, the company said it was under no obligation to disclose projections how viewed increased mobile use and different products would affect future revenue. The company noted that the U.S. SEC has refused disclosure of such information due to the impact it would have on companies raising money in an IPO.
There are currently about 31 lawsuits pending against Facebook, which caught ridicule following the May 18, 2012, IPO as shares plummeted after trading commenced and in the weeks following. Nasdaq OMX (Nasdaq: NDAQ), which ran the IPO and admitted to internal errors, has also seen its share of flack, recently settling with the U.S. SEC to the tune of $62 million.
Into Q1 results, analysts see Facebook reporting EPS of 13 cents on revs of $1.45 billion. Short interest is negligible at 35.34 million shares. Money flow is net positive by $14.5 million as of noon Wednesday.
Shares are down 1.3 percent.
Currently, Facebook and about a dozen banks are requesting that a lawsuit be thrown out which accuses the company of "misleading" investors about its financial condition ahead of the IPO. According to Reuters, the company said it was under no obligation to disclose projections how viewed increased mobile use and different products would affect future revenue. The company noted that the U.S. SEC has refused disclosure of such information due to the impact it would have on companies raising money in an IPO.
There are currently about 31 lawsuits pending against Facebook, which caught ridicule following the May 18, 2012, IPO as shares plummeted after trading commenced and in the weeks following. Nasdaq OMX (Nasdaq: NDAQ), which ran the IPO and admitted to internal errors, has also seen its share of flack, recently settling with the U.S. SEC to the tune of $62 million.
Into Q1 results, analysts see Facebook reporting EPS of 13 cents on revs of $1.45 billion. Short interest is negligible at 35.34 million shares. Money flow is net positive by $14.5 million as of noon Wednesday.
Shares are down 1.3 percent.
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