RADNOR, Pa. May 24, 2012
New York May 18, 2012 http://www.ktmc.com/cases/facebook
July 23, 2012
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.
May 16, 2012 May 18, 2012 $38 $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.
the United States
Darren J. Check, Esq.
SOURCE Kessler Topaz Meltzer & Check, LLP