Overview
In an opinion today, Judge Sweet dismissed derivative claims against various Facebook officers and directors arising from the IPO last May. The claims were dismissed because (1) the plaintiffs bought shares in the IPO — after the alleged wrongdoing — and thus lacked standing; (2) the plaintiffs failed to make a pre-suit demand on the board; and (3) the claims were based on the cost of investigating, defending, settling and/or paying a judgment in various unresolved class action cases against Facebook and thus were not yet ripe. Prior posts on the Facebook cases are here.
