Facebook Inc. Settles Lawsuit
Facebook Inc. and Mark Zuckerberg, Chief Executive of Facebook, have reached a $35 million settlement of class-action litigation accusing them of concealing concerns about the growth of the social media company prior to its May 2012 initial public offering.
On Monday, the settlement was filed in the federal court in Manhattan and it won preliminary approval from Robert Sweet, a U.S. District Judge.
The settlement totals to a small fraction of the current market value of Facebook, which is roughly $537 billion, according to the Monday’s market close.
Shareholders, who are led by the Arkansas Teacher Retirement System and Fresno County Employees’ Retirement Association in California, have blamed the social media giant for covering internal worries about how the growth in mobile devices might lessen its revenue, even as the company quietly advised its banks to cut their predictions.
“Resolving this case is in the best interests of the company and our shareholders,” stated Sandeep Solanki, an Associate General Counsel.
Meanwhile, a lawyer for the shareholders did not give any comment about the matter.
Sweet scheduled a hearing on September 5 to consider final settlement approval.
German Prosecutors Will Not Investigate Facebook
On Monday, the German prosecutors stated that they would not open formal investigation to Mark Zuckerberg and other managers of Facebook in connection with a complaint claiming that the social media giant broke national laws against hate speech and sedition.
In 2016, Chan-jo Jun, a German attorney, had filed an objection with prosecutors in Munich and demanded the executives of the company to comply with anti-hate speech laws by deleting the racist and violent postings from the social media.
Jun gathered a list of about 440 postings from facebook that were flagged as inappropriate but not got deleted over a period of a year.
However, Facebook did not give any comment about the matter.
Germany has one of the toughest laws covering defamation, public incitement to commit crimes and threats of violence, with prison sentences for Holocaust denial or inciting hatred against minorities. However, there are only few online cases that are prosecuted.
According to the statement of the Munich prosecutors’ office, Facebook failing to delete those posts was not a crime.
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Peter Blake | February 27, 2018