Wolf Haldenstein Adler Freeman & Herz LLP, along with the Law Offices of
Marc S. Henzel, filed a class action lawsuit in the United States
District Court for the Northern District of California, on behalf of all
persons who purchased the common stock of Facebook, Inc. (“Facebook” or
the “Company”) [NASDAQ: FB] pursuant or traceable to the Company’s May
18, 2012 initial public offering (the “IPO”).
In its May 18, 2012 IPO, Facebook floated over 421 million shares of its
common stock to the public at a price of $38 per share on the NASDAQ
Global Select Market under the symbol “FB.” Under the terms of the
offering, Facebook sold 180,000,000 shares of Class A common stock and
selling stockholders sold 241,233,615 shares of Class A common stock. In
total, the IPO raised $16 billion for the Company and the selling
stockholders.
Plaintiffs seek to recover damages on behalf of all purchasers of
Facebook common stock pursuant or traceable to the Company’s IPO (the
“Class”). This is a federal securities class action and is brought by
Plaintiffs alleging claims under Sections 11, 12, and 15 of the
Securities Act of 1933 (“Securities Act”) against Defendants.
The IPO was marketed through the public issuance of the Registration
Statement and Prospectus (collectively, the “Offering Documents”) prior
to the IPO, as well as through numerous “road shows” that senior
Facebook executives attended along with the IPO’s underwriters. The
Complaint alleges that the Offering Documents contained material
misstatements and material omissions concerning the investment risks of
buying Facebook shares. The Prospectus, for example, discussed that the
number of active users of Facebook was increasing at a greater rate than
the number of ads delivered was increasing, but failed to materially
disclose that Facebook’s revenue and revenue growth rate would be lower
than the estimates that were originally disclosed and forecasted. Prior
to the Company’s IPO, Underwriter Defendants in this action were
privately lowering their estimates of the Company’s revenues and
revenues growth rate, while at the same time, the Company and
Underwriter Defendants were public upwardly revising the projected IPO
price to the effective price of $38 per share.