RYE BROOK, N.Y.--(BUSINESS WIRE)--Klafter Olsen & Lesser LLP has filed a securities class action complaint against Facebook, Inc. (“Facebook” or the “Company”) (NASDAQ: FB), certain of its officers, and the lead underwriters of its May 18, 2012 Initial Public Offering (“IPO”) in the U.S. District Court for the Southern District of New York (Civil Action No. 12-cv-4194) on behalf of all persons or entities who purchased the Class A common stock of Facebook pursuant to the IPO, except for defendants and certain entities that were informed by Defendants of the material information concealed from Plaintiff and the class.
Specifically, Plaintiff alleges that Facebook informed analysts at the lead underwriters, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, and Goldman Sachs & Co. to materially lower their financial estimates for Facebook’s second quarter of 2012 which information was only conveyed by the underwriter defendants to a select few of their customers and that the disclosures in the Registration Statement and Prospectus for the IPO were woefully inadequate to disclose this material information. Plaintiff further alleges that as this news began to come out on May 21 and 22, 2012, Facebook stock lost 18 percent of its value, causing investors approximately $2.5 billion in losses.
If you purchased Facebook Class A shares on the IPO and have sustained losses, and wish to discuss this action or your rights, please contact Klafter Olsen & Lesser LLP at www.klafterolsen.com or call us at the number indicated below for a more thorough explanation of the claims that have been asserted in this action. If you wish to serve as lead plaintiff, you must move the Court no later than July 22, 2012. Any member of the class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Klafter Olsen & Lesser LLP has extensive expertise in prosecuting investor class actions involving financial fraud and has offices in Washington D.C. and New York. Please visit our website for more information about the Firm.