NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Facebook, Inc. (“Facebook” or the “Company”) (NASDAQ:FB) of the May 21, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Facebook stock or options between February 3, 2017 and March 19, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/FB. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased or otherwise acquired common shares of Facebook between February 3, 2017 and March 19, 2018 (the “Class Period”). The case, Yuan v. Facebook, Inc. et al, No. 5:18-cv-01725 was filed on March 20, 2018 and has been assigned to Judge Edward John Davila.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Facebook violated its own data privacy policies by allowing third parties to access the personal data of millions of Facebook users without the users’ consent; (2) discovery of the foregoing conduct would subject the Company to heightened regulatory scrutiny; and (3) as a result, Facebook’s public statements were materially false and misleading.
Specifically, on March 17, 2018, the New York Times reported that Cambridge Analytica, the firm that worked to target voters online in connection with Donald Trump’s 2016 presidential campaign, used the data of 50 million people obtained from Facebook without making proper disclosures or obtaining permission.
On this news, Facebook’s share price fell from $185.09 per share on March 16, 2018 to a closing price of $172.56 on March 19, 2018—a $12.53 or a 6.77% drop.
Then, on March 19, 2018, post-market, Bloomberg published an article revealing that the U.S. Federal Trade Commission is “probing whether Facebook violated terms of a 2011 consent decree of its handling of user data that was transferred to Cambridge Analytica without [user] knowledge.”
Lastly, on March 20, 2018, several media outlets reported that the U.K. Parliament had summoned Facebook Chief Executive Officer Mark Zuckerberg to give evidence over the scandal involving London-based Cambridge Analytica.
Following these reports, Facebook’s share price fell from $172.56 per share on March 19, 2018 to a closing price of $168.15 on March 20, 2018—a $4.41 or a 2.56% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Facebook’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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