Facebook faces seven more class actions

June 12, 2012 by

On May 28, 2012, seven additional securities fraud class actions were filed against Facebook.  The cases were filed in New York and in California.

The complaints allege that only large institutional investors were informed of reduced revenue estimates during the roadshow.  The Facebook IPO went public on May 18, 2012 at $38 per share, and only a few minutes later reached a high of $45 per share.  The complaints allege that on May 22, 2012, as reports of the materially lowered revenue estimates filtered out to the public through Reuters and other media outlets, the price of Facebook shares declined to close at only $31 per share.  The complaints further allege that had Plaintiffs and the members of the Class known the facts not disclosed in the Offering Documents, they would  not have purchased their Facebook shares or would have purchased them only at substantially reduced prices.

Steve Larson
An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, consumer cases, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, employment matters, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve's clients value his creative approach to resolving complex litigation matters.

Legal Disclaimer

The information contained in this blog does not constitute legal advice, and does not create an attorney-client relationship. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this blog.