A settlement was reached with the defendants in the lawsuit filed on behalf of certain investors of Facebook Inc (NASDAQ: FB) over alleged securities laws violations and a deadline to submit the settlement claim is upcoming on October 7, 2015 and NASDAQ: FB investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 09/24/2015 -- A deadline is coming up on October 7, 2015 in the settlement reached in the securities class action lawsuit filed on behalf of all persons and entities that entered the retail premarket and aftermarket orders to purchase and/or sell the common stock of Facebook Inc on May 18, 2012, and who suffered monetary losses as a result of the conduct alleged in the complaint.
Investors who entered the retail premarket and aftermarket orders to purchase and/or sell a significant amount of the common stock of Facebook Inc on May 18, 2012, have certain options and should contact the Shareholders Foundation by email at firstname.lastname@example.org or call +1(858) 779 - 1554.
The settlement proof of claim form or detailed settlement notice for the settlement in the Facebook Inc (NASDAQ: FB) Investor Securities Class Action Lawsuit can be downloaded at: http://shareholdersfoundation.com/case/facebook-inc-nasdaq-fb-investor-securities-class-action-lawsuit-05232012
In order to submit a claim an investor has to submit the claim proof to the class action claim administrator in a timely manner. The deadline to submit the proof with the class administrator is October 7, 2015. The class action administrator for this case is AB Data, Ltd.
The lawsuit was originally filed in the U.S. District Court for the Southern District of New York against Facebook Inc over alleged violations of Federal Securities Laws in connection with the initial public offering on May 18, 2012.
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 Inc's business, operations and prospects, in violation of federal securities laws.
Facebook Inc (NASDAQ: FB) went public on May 18, 2012 with an IPO share price of $38 but it popped to a high of $42.025 per share. Facebook Inc received net proceeds of approximately $6.7 billion and the selling stockholders received approximately $9 billion.
However, Facebook Inc (NASDAQ: FB) shares closed on Friday at $38.07 per share.
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 Inc 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, JP 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.
Two top U.S. financial regulators are reportedly reviewing the initial public offering of Facebook Inc.
The U.S. Securities and Exchange Commission Chairman Mary Schapiro reportedly said to reporters that they would be looking into problems surrounding the initial public offering. The chairman of the Financial Industry Regulatory Authority reportedly said that the allegations are very serious and will be reviewed.
Following the IPO of Facebook Inc the NASDAQ reportedly set aside money to compensate customers for issues with trading orders. Trading in Facebook Inc shares on Friday was delayed by 30 minutes and left many investors in the dark about the status of their orders for more than two hours. A NASDAQ Stock Market official reportedly told customers that it would have pulled the plug on Facebook's IPO had it known the full extent of the technical problems that plagued its systems.
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