FB investor class-action suit

NEW YORK: A US judge has cleared a class-action suit against Facebook (FB) from investors claiming the social network failed to fully disclose its risks at the time of its 2012 share offering. In a ruling posted this week, Judge Robert Sweet certified the class-action suit which claimed Facebook failed to provide adequate information to all its investors. In the case led by teacher and other public employee pension funds, the plaintiffs claim Facebook withheld key financial information ahead of the initial public offering in 2012. The judge said there was evidence presented that some investors failed to get the same information as investment banks and other institutional investors that were close to the underwriters. He said the case could move forward with ‘sub-classes’ of retail and institutional investors. Facebook, which has denied the accusations, said it was appealing the decision.