So, if Facebook is the defendant then some Facebook shareholders are being paid some of their own money and some money belonging to other shareholders who aren't defendants, presumably, mostly the latter. What would be fair in these circumstances would be to make all shareholders plaintiffs. It would then be a zero-sum game except for the money that goes to the lawyers. I wonder how long it would take for shareholders to then realise that they're paying lawyers for nothing.
Full disclosh: Facebook to pay shareholders $35m over IPO non-disclosure claims
Facebook and its top execs have agreed to pay out $35m to get shareholders off their case over allegations the biz knew mobile use was affecting ad revenue before it went public in 2012. The company filed its initial public offering on May 17, 2012, when it sold more than 421 million shares at $38 per share, raising some $16bn …