SEC drops probe into Facebook's pre-IPO sales disclosures

The agency told Facebook that no enforcement action will be taken, the company said in a filing

The U.S. Securities and Exchange Commission has dropped its investigation into disclosures about Facebook advertising sales before the company went public in 2012.

Facebook said Thursday in an SEC filing that it was notified by the agency in May that the inquiry had been terminated and no enforcement action was recommended.

The SEC launched its investigation over claims that Facebook shared lowered advertising-sales projections immediately before its initial public offering with some analysts, who then shared that information with a select group of investors without disclosing it to the wider public.

Dozens of lawsuits were filed against Facebook over the matter. Many of them, however, were dismissed last year by a federal judge, who ruled that Facebook made "extensive warnings" in its registration statement around the health of its business tied to mobile trends.

Facebook's mobile advertising business now is healthy and strong.

Morgan Stanley led the underwriting of Facebook's IPO. The bank did not immediately respond to a request for comment. Facebook declined to comment beyond the filing, and the SEC declined to comment.

The events surrounding Facebook's IPO are the subject of various state and federal inquiries. There were technical glitches too, which delayed trade notices and caused some trading firms to lose money due to mismatched shares.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags social mediainternetbusiness issuesFacebooklegalsocial networkingfinancial resultsInternet-based applications and servicesU.S. Securities and Exchange Commission

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Zach Miners

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?