A US judge has given the go-ahead to two lawsuits accusing Facebook of hiding concerns over growth forecasts ahead of its initial public offering (IPO) in 2012.
Facebook floated around three-and-a-half years ago at $38 per share. But initial investors would've lost out after its share price fell as low as $17.55 a few months later, and stayed below the IPO price for more than a year.
US district judge Robert Sweet said investors who claimed to have unfairly lost money after buying shares in the $16bn flotation can launch a class action suit.
Facebook has said it will appeal the class actions, which the company described as "without merit" and in conflict with "well-settled" precedent.
The decision was dated December 11, however it had been kept under seal. Sweet made it public yesterday.
Facebook shares were last up around 1.26 per cent at $107.26 per share.