San Diego, CA -- (SBWIRE) -- 07/17/2012 -- A deadline is coming up on July 23, 2012 in the lawsuit filed for investors of Facebook Inc (NASDAQ:FB) in connection with Facebook’s IPO.
Investors with a substantial investment in Facebook Inc (NASDAQ:FB) shares , who purchased their NASDAQ:FB shares pursuant or traceable to the IPO, should get active before the Deadline that is coming up on July 23, 2012 and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The lawsuit was filed on behalf of all persons or entities who purchased the securities of Facebook Inc (NASDAQ:FB) pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with Facebook's IPO (including investors who purchased shares through May 22, 2012). The plaintiff alleges, among others, that the offering materials provided to potential investors were negligently prepared and failed to disclose material information about Facebook’s business, operations and prospects, in violation of federal securities laws.
Facebook Inc went public on May 18, 2012 and on May 22, 2012, reports said the three banks, Morgan Stanley, Goldman Sachs, and JPMorgan, who will split about $176 million for managing the social-networking company’s initial public offering, all downgraded their earnings forecasts for Facebook Inc while it was still conducting its pre-IPO roadshow. A revised version that was released during the IPO roadshow sometime last week revealed huge revenue losses for Facebook and projected into late 2012. A former Merrill Lynch analyst said he's never heard of such thing happening before.
The plaintiff claims that Facebook Inc, certain of its executive officers and directors and the underwriters of the IPO allegedly failed to disclose that during the IPO roadshow, the lead underwriters, including Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, and Goldman, Sachs & Co., cut their earnings forecasts and that news of the estimate cut was passed on only to a handful of large investor clients, not to the public.
One article said Facebook’s IPO is among the worst big U.S. IPO in 5 years.
NASDAQ:FB shares rose from $38 to $38.232 per share on May 18, 2012 but fell to as low as $25.869 per share on June 5, 2012.
On July 16, 2012, NASDAQ:FB shares closed at $28.25 per share.
Those who purchased shares of Facebook Inc (NASDAQ:FB), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego