Berman DeValerio Files Securities Class Action Suit against Facebook, Inc.
Press Release: Berman DeValerio – 7 hours ago
BOSTON, Mass.--(BUSINESS WIRE)--
The law firm of Berman DeValerio filed a securities class action lawsuit today on behalf of purchasers of Facebook, Inc. (FB) (“Facebook” or the “Company”) in or traceable to the Company’s May 18, 2012, initial public offering (the “IPO”).
Berman DeValerio (www.bermandevalerio.com) is one of the nation’s top law firms representing investors seeking to recover money due to stock fraud. The lawsuit, which is captioned Eannarino v. Facebook Inc., et al., 12-civ-4360, is pending in the United States District Court for the Southern District of New York. To receive a copy of the complaint, please call Berman DeValerio at (800) 516-9926 or click here.
The lawsuit alleges that Facebook, Morgan Stanley, Inc., and certain of Facebook’s officers, directors and underwriters violated the Securities Act of 1933 (“Securities Act”) in connection with the Company’s IPO, which took place on May 18, 2012. In the IPO, defendants sold 421 million shares of Facebook’s common stock at $38 per share, for total proceeds of more than $16 billion.
According to the complaint, the registration statement and prospectus filed in connection with the IPO were false and misleading, as they failed to disclose that: (1) the Company had warned its underwriters that its second-quarter 2012 sales would be at the lower end of its estimates; (2) its underwriters had lowered their performance estimates for the Company; and (3) certain defendants were actively suppressing demand for the IPO by secretly disclosing this information to certain preferred investors.
As alleged in the complaint, based on this selective disclosure and as news of Facebook’s lowered estimates reached the market, Facebook’s stock dropped precipitously, ultimately closing down $9.81 or 26%, causing investors aggregate losses of approximately $4 billion.
If you are a member of the alleged class, you may, no later than July 23, 2012, request that the court appoint you as Lead Plaintiff for the class. You may contact the attorneys at Berman DeValerio to discuss your rights and interests in the case. Please note: you also may retain counsel of your choice, but do not need to take any action at this time to be a class member. Pursuant to the Private Securities Litigation Reform Act of 1995, investors wishing to serve as the lead plaintiff are required to file a motion for appointment with the Court no later than July 23, 2012.
Berman DeValerio is a national law firm representing investors for violations of securities and antitrust laws. The firm has 45 lawyers in Boston, San Francisco and Palm Beach Gardens, Florida.
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