In February, Facebook filed a Registration Statement and Prospectus with the Securities Exchange Commission in connection with its Initial Public Offer ("IPO"). On May 18th, the Registration Statement was declared effective and Facebook stock started trading publicly at an initial offering price of $38.00 per share, the largest valuation for a newly public company. Morgan & Morgan has filed a complaint alleging that Facebook, its directors, and its underwriters knowingly misled the general trading public with regard to the Facebook IPO.
In our complaint, we note that the company, at the time of the IPO, was both experiencing and anticipating a significant drop in revenue due to more and more users accessing their services via mobile devices. Facebook makes money through its advertising network, but users accessing the site through apps and mobile browsers are not shown these ads.
Facebook's Registration Statement failed to disclose to the investing public the necessary material information concerning its financial stability. Even more damning is evidence that certain underwriter banks leaked this information to select investors, while the general investing public was unfairly kept in the dark.
Based on the above information and more, our Securities Law division has filed a class action lawsuit against Facebook, Inc. We are further investigating the events surrounding the Facebook IPO and the negative effects it has had on investors. Our securities attorneys are highly experienced and are reviewing this matter thoroughly.
If you purchased shares following the Facebook IPO on May 18, 2012, we will review your potential claim for free. There is no risk to you, and, if you wish to actively participate in this action, you will be joining with others who lost money. Please fill out the case review form on the right, contact our securities law office at (212) 564-1637, or send an email to email@example.com to discuss this action with our firm.