Facebook Amends IPO to Reflect Yahoo! Suit

NEW YORK ( TheStreet) -- Facebook amended the registration statement for its initial public offering on Tuesday to reflect a lawsuit filed earlier this month by Yahoo! ( YHOO).

The social networking giant, which filed its original S-1 with the Securities and Exchange Commission to raise up to $5 billion on Feb. 1, said Yahoo! filed a suit alleging a number of Facebook products infringe on 10 Yahoo! patent on March 12, noting that: "If an unfavorable outcome were to occur in this litigation, the impact could be material to our business, financial condition, or results of operations. "

That said, Facebook plans to "vigorously defend" itself against the Yahoo! suit, and said it has yet to file an answer or make counterclaims with regard to the litigation through which Yahoo! is seeking "unspecified damages, a damage multiplier for alleged willful infringement, and an injunction."

Elsewhere in the amended filing, Facebook commented on the continued litigation of Paul Ceglia, who has made claims to own a substantial amount of the company through early dealings with CEO Mark Zuckerberg. "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," the company said.

The company also said that its users are spent "more than 10.5 billion minutes per day on Facebook on personal computers during January 2012" with aggregate minutes per day increasing 57% during the month from a year ago.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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