Facebook updated its $5 billion initial public offering (IPO) filing this week to include the details about its patent battle with Yahoo.
This is the third time Facebook has amended its S-1 form. The list of lawsuits against the company seems to grow as the company gets closer to becoming a publicly traded company, which is expected to happen by May.
The company is required to keep the U.S. Securities and Exchange Commission — and its potential shareholders — in the loop about legal issues that could drain the company’s wallet. Although Facebook seeks to raise $5 billion for its IPO, market analysts have valued Facebook at $100 billion.
On March 12, Yahoo filed a lawsuit in U.S. District Court in San Jose, Calif., stating Facebook infringed on 10 of Yahoo’s patent technologies related to “advertising,” “social networking,” “privacy,” “customization” and “messaging.”
“Yahoo is seeking unspecified damages, a damage multiplier for alleged willful infringement, and an injunction,” the SEC S-1 form says.
Facebook has not filed a counterclaim or commented on Yahoo’s allegations. The company said it plans to “vigorously defend this lawsuit.”
“This litigation is still in its early stages and the final outcome, including our liability, if any, with respect to these claims, is uncertain,” Facebook wrote in the most recently updated IPO. “If an unfavorable outcome were to occur in this litigation, the impact could be material to our business, financial condition, or results of operations.”
Along with intellectual property claims lawsuits, the social network is juggling class action lawsuits, too. Facebook notes that defending intellectual property lawsuits is expensive — and that it’s unsure if its defense will be successful.
“As we face increasing competition and gain an increasingly high profile, including in connection with our initial public offering, we expect the number of patent and other intellectual property claims against us to grow,” Facebook said in the S-1 form.
Source: Mashable
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