Facebook filing provides a few new nuggets; still no stock price

Two of the updates in the new Facebook S-1 involve legal disclosures.

There’s the disclosure of the Yahoo patent lawsuit:

“From time to time, we receive notice letters from patent holders alleging that certain of our products and services infringe their patent rights. Some of these have resulted in litigation against us. For example, on March 12, 2012, Yahoo filed a lawsuit against us in the U.S. District Court for the Northern District of California that alleges that a number of our products infringe the claims of ten of Yahoo’s patents that Yahoo claims relate to “advertising,” “social networking,” “privacy,” “customization,” and “messaging.” Yahoo is seeking unspecified damages, a damage multiplier for alleged willful infringement, and an injunction. We have not yet filed an answer or asserted any counterclaims with respect to this complaint. We intend 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. If an unfavorable outcome were to occur in this litigation, the impact could be material to our business, financial condition, or results of operations.”

Also on the Paul Ceglia laswuit:

“On March 26, 2012, we filed a motion to dismiss Mr. Ceglia’s complaint and a motion for judgment on the pleadings.”

Beyond that, there were a few tweaks. Facebook added language about its international monthly average users (MAUs):

“In all regions, an increasing number of our MAUs are accessing facebook through mobile devices, with users in the United States, India, Brazil, and Mexico representing key sources of mobile growth over this period.”

Virtual goods numbers:

“We estimate that approximately 5 million and 15 million users purchased virtual or digital goods using Facebook Payments during the years ended December 31, 2010 and 2011, respectively.”

Interestingly, when discussing the growing internal valuation of its estimated stock value, Facebook explained why it increased so dramatically during 2011:

“We believe our valuation increase was affected by media speculation that we were planning an initial public offering in 2012, investor speculation that our financial performance was better than investors had previously believed, and the successful public offerings and trading performance of certain Internet companies in the second quarter.”


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