Facebook 2014 Annual Report Download - page 30

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None.
As of December 31, 2014
, we leased office and data center facilities around the world totaling approximately 3 million square feet, including one
million square feet for our corporate headquarters in Menlo Park, California. We have data centers in the United States, including data center facilities
that we own in Iowa, North Carolina, and Oregon and leased data center facilities in California and Virginia. We also own a data center facility in Lulea,
Sweden. We believe that our facilities are adequate for our current needs. To support planned future growth, we are currently making significant
investments to expand our corporate headquarters in Menlo Park, California.
Paul D. Ceglia filed suit against us and Mark Zuckerberg on or about June 30, 2010, in the Supreme Court of the State of New York for the
County of Allegheny, claiming substantial ownership of our company based on a purported contract between Mr. Ceglia and Mr. Zuckerberg allegedly
entered into in April 2003. We removed the case to the U.S. District Court for the Western District of New York, where the case is now pending. In his
first amended complaint, filed on April 11, 2011, Mr. Ceglia revised his claims to include an alleged partnership with Mr. Zuckerberg, he revised his
claims for relief to seek a substantial share of Mr. Zuckerberg's ownership in us, and he included quotations from supposed emails that he claims to have
exchanged with Mr. Zuckerberg in 2003 and 2004. On March 26, 2012, we filed a motion to dismiss Mr. Ceglia's complaint and a motion for judgment
on the pleadings.
On March 26, 2013, the magistrate judge overseeing the matter issued a report recommending that the court grant our motion to
dismiss and that it deny as moot our motion for judgment on the pleadings. On March 25, 2014, the district judge adopted the magistrate judge’
s report
and recommendation and granted our motion to dismiss and denied our motion for judgment on the pleadings as moot. On April 24, 2014, Mr. Ceglia
filed a notice of appeal. The appeal has been fully briefed. We continue to believe that Mr. Ceglia is perpetrating a fraud on the court and we intend to
continue to defend the case vigorously.
Beginning on May 22, 2012, multiple putative class actions, derivative actions, and individual actions were filed in state and federal courts in the
United States and in other jurisdictions against us, our directors, and/or certain of our officers alleging violation of securities laws or breach of fiduciary
duties in connection with our initial public offering (IPO) and seeking unspecified damages. We believe these lawsuits are without merit, and we intend
to continue to vigorously defend them. The vast majority of the cases in the United States, along with multiple cases filed against The NASDAQ OMX
Group, Inc. and The Nasdaq Stock Market LLC (collectively referred to herein as NASDAQ) alleging technical and other trading-
related errors by
NASDAQ in connection with our IPO, were ordered centralized for coordinated or consolidated pre
-
trial proceedings in the U.S. District Court for the
Southern District of New York. In a series of rulings in 2013 and 2014, the court denied our motion to dismiss the consolidated securities class action
and granted our motions to dismiss the derivative actions against our directors and certain of our officers. The plaintiffs in four of these derivative
actions have filed notices of appeal. On December 23, 2014, the plaintiffs in the consolidated securities class action filed their motion for class
certification. In addition, the events surrounding our IPO became the subject of various state and federal government inquiries. In May 2014, the
Securities and Exchange Commission (SEC) notified us that it had terminated its inquiry and that no enforcement action had been recommended by the
SEC.
In addition, we are also currently parties to multiple other lawsuits related to our products, including other patent infringement lawsuits as well as
class action lawsuits brought by users and marketers, and we may in the future be subject to additional lawsuits and disputes. We are also involved in
other claims, government investigations, and proceedings arising from the ordinary course of our business.
Not applicable.
27
Item 1B.
Unresolved Staff Comments
Item 2. Properties
Item 3.
Legal Proceedings
Item 4.
Mine Safety Disclosures