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Shareholder Class Action Filed Against Facebook, Inc. by the Law Firm of Kessler Topaz Meltzer & Check, LLP
May 24, 2012 (04:05 PM EDT)
RADNOR, Pa., May 24, 2012 /PRNewswire/ -- The following statement was issued today by the law firm of Kessler Topaz Meltzer & Check, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of Facebook, Inc. (NASDAQ: FB) ("Facebook" or the "Company") pursuant and/or traceable to the Company's May 18, 2012 initial public offering (the "IPO" or the "Offering"). If you are a member of this class, you can view a copy of the Complaint or join this class action online at http://www.ktmc.com/cases/facebook.
Members of the class may, not later than July 23, 2012, move the Court to serve as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision of whether or not to serve as a lead plaintiff. Any member of the purported 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.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at email@example.com. For additional information about this lawsuit, or to join the class action online, please visit http://www.ktmc.com/cases/facebook.
The Complaint charges Facebook and certain of its officers, directors and underwriters with violations of the Securities Act of 1933. Facebook operates as a social networking company worldwide. More specifically, the Complaint alleges that the Company and its underwriters failed to disclose and misrepresented material adverse facts which were known to defendants or recklessly disregarded by them. The Registration Statement and Prospectus (collectively the "Offering Materials") contained untrue statements of material facts and were in violation of the Securities Act.
On or about May 16, 2012, Facebook filed with the SEC a Form S-1/A Registration Statement (the "Registration Statement"), for the IPO. On or about May 18, 2012, the Prospectus (the "Prospectus") with respect to the IPO, which forms part of the Registration Statement, became effective and 421 million shares of Facebook common stock were sold to the public at $38 per share, thereby valuing the total size of the IPO at more than $16 billion.
The Complaint asserts that defendants failed to disclose at the time of the IPO that Facebook was then experiencing a severe and pronounced reduction in revenue growth due to an increase in users of its Facebook mobile applications ("apps") or website through mobile devices rather than through personal computers. Additionally, defendants failed to disclose during the roadshow conducted in connection with the IPO, certain Underwriter Defendants reduced their second quarter and full year 2012 performance estimates for Facebook, which revisions were material information which was not shared with all Facebook investors, but rather, was selectively disclosed by defendants to certain preferred investors and omitted from the Offering Materials.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Kessler Topaz Meltzer & Check, which prosecutes class actions in both state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.
SOURCE Kessler Topaz Meltzer & Check, LLP