Pomerantz Law Firm Reminds Shareholders of Facebook, Inc. of Upcoming Deadline -- FB
Published on Friday, 06 July 2012 20:29 Written by TradersHuddle Staff
NEW YORK, July 6, 2012 (GLOBE NEWSWIRE) -- Shareholders of Facebook Inc. ("Facebook" or the "Company") (Nasdaq:FB) are reminded of the securities class action filed against Facebook and certain of its officers. The federal securities class action (12 Civ. 4184), filed in the United States District Court, Southern District of New York, is on behalf of all persons who purchased securities of Facebook pursuant and/or traceable to the Company's Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with the Company's May 18, 2012 initial public offering (the "IPO" or the "Offering"). This class action is brought under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 15 U.S.C. Sections 77k, 77l and 77o.
On May 17, 2012, the Company announced the pricing of its IPO of 421,233,615 shares of its common stock at $38.00 per share. The total offering price was priced at over $16 billion, with underwriters' discounts and commissions totaling over $176 million, shares sold by the selling shareholders totaling over $9 billion, and shares sold by the Company totaling $6.8 billion.
In connection with the Company's IPO, Defendants failed to disclose that: (1) the Company was then experiencing a severe and pronounced reduction in revenue growth due to an increase of users of its Facebook app or website through mobile devices rather than a personal computer such that the Company told the Underwriter Defendants to materially lower their revenue forecasts for 2012; (2) during the IPO roadshow conducted in connection with the IPO, certain underwriters, including Morgan Stanley, J.P. Morgan, and Goldman Sachs, reduced their second quarter and full year 2012 earnings forecasts for Facebook; and (3) the revised financial forecasts were selectively disclosed by defendants to certain preferred investors.
On May 19, 2012, Reuters revealed in an article that Facebook "altered its guidance for research earnings last week, during the road show, a rare and disruptive move." On this news, Facebook shares declined $4.20 per share or nearly 11%, to close at $34.03 per share on May 21, 2012.
On May 22, 2012, Reuters revealed that, in the middle of Facebook's IPO roadshow, several of the lead underwriters, including Morgan Stanley, reduced their revenue estimates for the Company's second quarter 2012 and full year 2012 and 2013. Significantly, these reduced estimates were only "relayed to big investors through phone calls and conference calls." On this news, Facebook shares declined an additional $3.03 per share or nearly 9%, to close at $31.00 per share on May 22, 2012.
The Pomerantz Firm, with offices in New York and Chicago, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 75 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of defrauded investors. See www.pomerantzlaw.com.
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