On Thursday, Mark Zuckerberg and Facebook Inc. have been dismissed from the lawsuit filed by an investor accusing them of misleading investors about the likely impact of a breach of privacy on its stock price, although the investors will have a chance to refile their case.
U.S. District Judge Edward Davila in San Jose, California said the investors had failed to allege that Facebook or its executives knowingly made false statements that led to investor losses.
The judge gave the investors until Oct. 26 to file a new version of their complaint, saying it was “possible plaintiffs can cure their allegations by alleging, among other things, more particular facts as to why statements by the individual defendants were false when made.”
The class-action lawsuit, which was consolidated from several investor complaints filed since last year, also targeted Facebook chief organization officer Sheryl Sandberg and chief financial officer, David Wehner.
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