Stefan Mileschin

Social notworking site Facebook and dozens of banks must face a lawsuit accusing the social media company of misleading investors about its health before its $16 billion initial public offering.

According to Reuters, US District Judge Robert Sweet in Manhattan threw out attempts by Facebook and the banks to have the case dismissed.

He said investors could pursue claims that Facebook should have disclosed internal projections on how increased mobile usage and product decisions might reduce future cash.

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