NEW YORK May 23, 2012
May 16, 2012 May 18, 2012 $38 $16 billion
The investigation seeks to determine whether the Registration Statement provided to potential investors failed to disclose material information about Facebook’s business, operations and prospects, in violation of federal securities laws. Specifically, whether certain of the Company’s executive officers and directors and the underwriters of the IPO failed to disclose that during the IPO roadshow, the lead underwriters cut their earnings forecasts, but only selectively disclosed the news of the estimate cut to certain preferred investors and not to the investing public.
SOURCE Faruqi & Faruqi, LLP