The Securities and Exchange Commission notified Facebook in May that its inquiry into the company’s initial public offering was complete, and no enforcement action would be taken, the social network reported last week in its Form 10-Q filing with the SEC.
Facebook wrote in its Form 10-Q:
Beginning May 22, 2012, multiple putative class actions, derivative actions and individual actions were filed in state and federal courts in the U.S. and in other jurisdictions against us, our directors and/or certain of our officers alleging violation of securities laws or breach of fiduciary duties in connection with our initial public offering and seeking unspecified damages. We believe these lawsuits are without merit, and we intend to continue to vigorously defend them.
The vast majority of the cases in the U.S., along with multiple cases filed against Nasdaq OMX Group and Nasdaq alleging technical and other trading-related errors by Nasdaq in connection with our IPO, were ordered centralized for coordinated or consolidated pre-trial proceedings in the U.S. District Court for the Southern District of New York.
In a series of rulings in 2013 and 2014, the court denied our motion to dismiss the consolidated securities class action and granted our motions to dismiss the derivative actions against our directors and certain of our officers. The plaintiffs in four of these derivative actions have filed notices of appeal.
In addition, the events surrounding our IPO became the subject of various state and federal government inquiries. In May 2014, the Securities and Exchange Commission notified us that it had terminated its inquiry and that no enforcement action had been recommended by the SEC.
Readers: Was the SEC correct?
Article courtesy of Inside Facebook
Good news, Californians. You can now, once again, use Google Maps on your phone while driving. That is, legally. Until this court ruling, map use was in a shady legal gray area. This comes two years after a Fresno, Calif., man was ticketed for looking at a map on his iPhone while stuck in construction. He was looking for an alternative route. As you do. The cop issued the $165 ticket under a law… Read More
Article courtesy of TechCrunch
In case you wondered whether the White House is deliberately ignoring its petition platform, the President’s Chief Technology Officer, Todd Park, wrote an official blog post in support of net neutrality.
“Absent net neutrality, the Internet could turn into a high-priced private toll road that would be inaccessible to the next generation of visionaries,” wrote Park about the contentious law that will allow Internet service providers to charge more money for some websites.
Park was responding to 105K people who signed an official petition on WeThePeople to prevent ISPs from charging websites different rates for different speeds. The AT&Ts and Verizons of the world could make a pretty penny by charging services, such as YouTube, to increase the speed of their websites. Major tech companies and civil liberty organizations fear that it would snuff out the savvy little guy who can’t afford the high prices, thereby ending the meritocracy of a net neutral web.
Last month, a circuit court threw out an important provision for the Federal Communication Commission’s jurisdiction over the law, potentially threatening the existence of net neutrality. Netflix, which stands to be hit the hardest by a change in the law, has been especially vocal in support of net neutrality after the court’s decision.
The FCC says it’s working on a potential solution that could withstand further court rulings. The president’s support could provide some cover as the FCC tries to maintain its role over this issue.
Obama’s support for net neutrality isn’t new, but responding to the official White House petitions is a nice sign that the executive branch is taking direct democracy seriously. According to the White House pledge, any WeThePeople petition that gathers more than 100K signatures will get an official response.
Some petitions are months old, however, leaving critics to question whether the petition system is being taken seriously. This goes to show that the White House can answer easy questions, like net neutrality, much faster. It does, however, take longer to figure out whether the president wants Justin Bieber deported.
Article courtesy of TechCrunch