TAMPA - This week, the law firm Morgan & Morgan filed a class action suit against Facebook, Inc. and the underwriters of the company's initial public offering in the United States District Court for the Southern District of New York.
Despite the massive amount of hype surrounding the social media giant's IPO, the stock price has fallen short of many expectations after being sold at a starting price of $38 per share.
Morgan & Morgan's complaint alleges that the Registration Statement issued in connection with the IPO was materially false and misleading in violation of the federal securities laws.
More particularly, the complaint notes that Facebook failed to disclose to the investing public the material information that the company was experiencing, and anticipating, a significant drop in revenue due to an increase of users accessing Facebook through mobile devices.
Facebook is drawing the attention of regulators including the SEC, the Senate Banking Committee and the House Financial Services Committee. The interest comes amid allegations that banks handling the social network's IPO may have provided only select clients with a negative assessment of the company.
If you purchased Facebook shares pursuant or traceable to the company's May 18, 2012 IPO, you may, no later than July 23, 2012, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
For more information please contact either Christopher Polaszek of Morgan & Morgan in Tampa at 813-223-5505 or Peter Safirstein/Sheila Feerick at Morgan & Morgan, Five Penn Plaza, 23rd floor, New York, New York 10001, by telephone at 212-564-1637, by email to securitieslaw@ForThePeople.com, or by visiting the firm's website at www.ForThePeople.com .
Copyright 2012 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.