CASES
Facebook, Inc.
Class Period: After May 17, 2012
Lead Plaintiff Deadline: Jul 23, 2012 + Deadline passed
Summary of Case:
A securities class action has been filed against Facebook, Inc. ("Facebook" or the "Company") on behalf of all those who purchased the common stock of Facebook pursuant and/or traceable to the Company's May 18, 2012 initial public offering (the "IPO"). This case has been filed in the USDC - SDNY.
On or about May 16, 2012, Facebook filed with the Securities and Exchange Commission a Form S-1/A Registration Statement (the "Registration Statement") for the IPO. On or about May 18, 2012, the Prospectus (the "Prospectus"), which forms part of the Registration Statement, became effective and Defendants sold 421 million shares of Facebook common stock to the public at $38 per share, for total proceeds of more than $16 billion.
The complaint alleges that the Registration Statement and Prospectus issued in connection with the IPO were false and misleading in violation of the Securities Act of 1933. Defendants failed to disclose that because Facebook was experiencing a pronounced reduction in revenue growth due to an increase of users of its Facebook app or website through mobile devices rather than traditional PCs, at the time of the IPO the Company had told the lead underwriters to reduce their 2012 performance estimates for Facebook. These revisions were material information which was not shared with all investors, but rather, was selectively disclosed by Defendants to certain preferred investors and omitted from the Registration Statement and/or Prospectus.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.