Lawsuits against Facebook
Facebook is an online social media giant but this does not mean that there is no need for monitoring their activities. While most of us are updating our statuses, uploading our latest pics of the grandkids or reposting funny videos, there are some people who are disgruntled with Facebook. There are presently several law suits pending. Whether or not they have a legitimate case will depend on the court’s finding. In the meantime, Facebook legal representatives and lawyers are preparing their next argument.
Facebook Faces Nationwide Class Action Suit
Yahoo! Claims Facebook Violated Patents
Yahoo! had threatened that they were going to file a lawsuit against Facebook because they had infringed on some of their patents including social networking, privacy controls and advertising. Yahoo! claims that Facebook has infringed on a total of 10 of their patents. Facebook contends that they have been longtime business partners and regretted that they would have to resort to litigation. Facebook had only 56USpatents which had been issued to them by the end of 2011. That’s not very many for a giant high tech company. Yahoo! on the other hand, has over 1000 patents that cover several different aspects. Usually, patent lawsuits will end up fizzling out, but Yahoo! contends that they will defend the suit. Yahoo! previously reached a settlement worth hundreds of millions of dollars when they did the same thing to Google just before they went public. Yahoo! which has been in steady decline in terms of revenue, over the last three years is hoping that they have similar results with the Facebook suit.
Facebook Faces IPO Lawsuits
We all moaned when Facebook took a hit with its IPO. There are still lots of discussions as to why it was botched. But since then, around 50 lawsuits have been filed against them. Most of the lawsuits against Facebook allege that the company’s investors were ill informed about the social media network’s growth. Most investors were unaware that they were suffering from many customers who were migrating to mobile devices from the desktop. Of course Facebook holds their own and states that the suits do not have any merit. Facebook does not face this alone as NASDAQ is also being accused of negligence in that they failed to execute trades properly during the IPO. It seems that there was a glitch in the system. According to Steven Caruso who is a partner with the firm Maddox, Hargett & Caruso in New York, he will be filing several arbitration claims with the Financial Industry Regulatory Authority. He is representing the investors who feel that the price was elevated and that different investors received varying information. NASDAQ admitted that there were some glitches with technology that day which hampered investor’s buying and selling ability. Facebook, NASDAQ, underwriters and directors are all being named in this massive suit. The key may be how each investor was treated in the Facebook deal.
This entry was posted by Eugene Aronsky & Moshe Zchut on January 23, 2013 at 10:30 am, and is filed under internet privacy, internet security, online security, privacy, Security, social media, social networks, website security. Follow any responses to this post through RSS 2.0.You can skip to the end and leave a response. Pinging is currently not allowed.
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