At least three lawsuits were filed for investors in NASDAQ:FB shares over alleged securities laws violations by Facebook Inc. and NASDAQ:FB stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 05/30/2012 -- Several investors in NASDAQ:FB filed lawsuits against Facebook, Inc, its CEO Mark Zuckerberg, and Morgan Stanley over alleged securities laws violations in connection with Facebook’s IPO.
Investors who purchased a substantial amount of shares of Facebook Inc (NASDAQ:FB) in or traceable to the IPO, have certain options and there are short and strict deadlines running. Deadline: July 23, 2012. NASDAQ:FB investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The lawsuits were 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. 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.
securities of Facebook Inc (NASDAQ:FB) began trading on NASDAQ on Friday with an IPO share price of $38 and popped to a high of $42.025 per share, but declined to a close of $38.07 on Friday.
Then on Monday, May 22, 2012, reports surfaced saying 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.
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 cut their earnings forecasts and that news of the estimate cut was passed on only to a handful of large investor clients, but not to the public.
The U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority are reportedly reviewing the initial public offering of Facebook.
On Monday, May 21, 2012 NASDAQ:FB stocks fell to a close of$34.06 per share and dropped on Tuesday to a close of $31.00 per share.
One article said Facebook’s IPO is among the worst big U.S. IPO in 5 years.
Facebook shares fell on Tuesday, May 29, 2012 to a new low and closed at $28.84 per share.
Those who who purchased a substantial amount of shares of Facebook Inc (NASDAQ:FB) in or traceable to the IPO, have certain options and there are short and strict deadlines running. Deadline: July 23, 2012. NASDAQ:FB investors should contact the Shareholders Foundation, Inc.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego