SAN FRANCISCO, Calif.--(BUSINESS WIRE)--The law firm of Girard Gibbs LLP today announced that it has filed a class action lawsuit against Facebook, Inc. (NASDAQ: FB) on behalf of investors who purchased shares of Facebook common stock pursuant or traceable to the company’s initial public offering (“IPO”). The Facebook lawsuit charges the company, its officers and directors, and underwriters with violations of federal securities laws for false and misleading statements made in the Registration Statement and Prospectus issued in connection with the IPO. Facebook investors who would like to learn more about their legal rights can contact Girard Gibbs at (866) 981-4800 or visit our website: Girard Gibbs Facebook Lawsuit Investigation.
Specifically, the complaint alleges that Facebook failed to disclose to the investing public the material information that the company was experiencing, and anticipating, a significant drop in revenue due to an increase of users accessing Facebook through mobile devices. According to news reports, this lower revenue projection was selectively released by underwriter banks to only certain large investor clients and not included in the Registration Statement.
Facebook debuted at a highly-anticipated initial public offering last week, selling 421 million shares for $38 per share. However, in the days following the IPO, the company’s stock price dropped by nearly 18% to about $31, well below its initial offering price.
“The reports that the lead underwriters shared this critical information with only a handful of their biggest clients are very troubling,” said attorney Jonathan Levine of Girard Gibbs. “It is crucial that all investors in public companies are provided with the most accurate information available when they are investing.”
If you invested in Facebook common stock and would like to learn more about this lawsuit, or have questions concerning your legal rights as a Facebook investor, contact Girard Gibbs at (866) 981-4800 or visit our website: Girard Gibbs Facebook Legal Investigation. Any member of the putative class may seek a lead plaintiff position through counsel of his or her choice, or may choose to do nothing and remain an absent class member. If you would like to serve as lead plaintiff in this action, you must move the Court no later than July 23, 2012. A copy of the complaint is available from the Court, or can be viewed on Girard Gibbs LLP’s website: www.GirardGibbs.com.
Girard Gibbs LLP is one of the nation’s leading firms representing investors, employees, consumers and small businesses in cases involving consumer protection, personal injury, securities, antitrust, and employment laws. The firm’s senior partners, Daniel Girard and Eric Gibbs, have been selected for inclusion in The Best Lawyers in America® 2012 and Northern California Super Lawyers, and have earned AV-Preeminent ratings from Martindale-Hubbell, recognizing them in the highest class of attorneys for professional ethics and legal skills.