Bernstein Liebhard LLP Announces That A Securities Class Action Has Been Filed Against Facebook, Inc.
May 23, 2012
Bernstein Liebhard LLP today announced that a securities class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of a class of purchasers of Facebook, Inc. (“Facebook” or the “Company”) (NASDAQ: FB) securities pursuant and/or traceable to the Company’s Registration Statement and Prospectus issued in connection with its $16 billion initial public offering of common stock on May 18, 2012 (the “IPO”).
The action was brought against Facebook, certain of its officers and directors, and the underwriters of the IPO for violations of the Securities Act of 1933. The complaint alleges that the IPO Registration Statement and Prospectus were negligently prepared and failed to disclose material information about Facebook’s business, operations and prospects.
On May 22, 2012, reports surfaced that analysts at Morgan Stanley and Goldman Sachs, underwriters of Facebook’s IPO, had revised downward their financial forecasts for the Company during the IPO roadshow. The revised forecasts were reportedly only passed along to certain major investors who were then able to sell their Facebook shares for a profit while the stock price rose immediately following the IPO. On May 22, 2012, Facebook shares closed at $31.00, significantly lower than the IPO price of $38.00. The Securities and Exchange Commission (“SEC”) and the Financial Industry Regulatory Authority (“FINRA”) have announced plans to investigate issues relating to the Facebook IPO.
Plaintiffs seek to recover damages on behalf of all Class members who purchased or otherwise acquired Facebook securities during the Class Period. If you purchased or otherwise acquired Facebook securities during the Class Period, and either lost money on the transaction or still hold the shares, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than July 23, 2012.
A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as a Facebook shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or firstname.lastname@example.org.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. It has been named to The National Law Journal’s “Plaintiffs’ Hot List” in each of the last nine years.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Southern District of New York.