Facebook amended its prospectus Tuesday to update would-be IPO investors on the status of two highly publicized legal matters.
The company also added comScore data from January showing a 57 percent increase from 2011 in the aggregate minutes per day that users spent on the social networking site. It also addressed challenges in determining mobile monthly active users, added more information to the voting agreement section, and better explained how it calculates fair value.
Of most significance, the social network, in amendment number three of its S-1 document, said that it intends to “vigorously defend” patent litigation from Yahoo, and that it has filed a motion to dismiss Paul Ceglia’s suit for 50 percent ownership of the company.
“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,” Facebook said in the new S-1. “We have not yet filed an answer or asserted any counterclaims with respect to this complaint. We intend to vigorously defend this lawsuit.”
Further down in the document, Facebook added that it cannot yet estimate financial damages to the company as a result of the suit. “If an unfavorable outcome were to occur in this litigation, the impact could be material to our business, financial condition, or results of operations,” the company explained.
Facebook also informed investors of the new developments in the Paul Ceglia case that first came to light yesterday.
“On March 26, 2012, we filed a motion to dismiss Mr. Ceglia’s complaint and a motion for judgment on the pleadings,” Facebook said in the amended S-1. “We continue to believe that Mr. Ceglia is attempting to perpetrate a fraud on the court and we intend to continue to defend the case vigorously.”
On a lighter note, Facebook also plucked information from a recent comScore report to show potential buyers and advertisers that its users are more hooked than ever. “Aggregate minutes per day increased 57 percent and average minutes per user per day increased 14 percent during January 2012 as compared to January 2011,” Facebook said in a blurb added to a section on its display advertising opportunity.
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