Abbey Spanier Sues Facebook And Underwriters Involved In Its Initial Public Offering

NEW YORK, May 25, 2012 /PRNewswire/ -- Abbey Spanier Rodd & Abrams, LLP specializing in class action suits, filed a class action lawsuit alleging that Facebook, Inc. (Nasdaq: FB) ("Facebook" or the "Company"),  Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Goldman Sachs & Co., Merrill Lynch, Pierce Fenner & Smith Incorporated, and Barclays Capital Inc. all failed to provide accurate information about Facebook's decline in earnings growth to all Facebook investors prior to the Company's Initial Public Offering ("IPO").

The complaint, filed in the United States District Court for the Southern District of New York (12-cv-4157) alleges while Facebook executives were out and about on the road show leading up to the IPO, the Company guided the underwriters to materially lower their earnings forecast for 2012, leading the underwriters to reduce Facebook's earnings estimates for the second quarter and full fiscal year 2012.  These revisions were material information which was not shared with all Facebook investors.   

The action was commenced on behalf of all persons and/or entities who purchased or otherwise acquired Facebook common stock pursuant to and/or traceable to the Company's initial public offering.  Plaintiffs bring this action under the Securities Act of 1933. The lawsuit seeks class actions status and monetary damages.

Investors who bought Facebook may move the court to appoint them as lead plaintiff no later than July 22, 2012.  A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiffs."  Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.

The attorneys at Abbey Spanier Rodd & Abrams, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of over one billion dollars for investors.  If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact:

Nancy Kaboolian, Esq.
Abbey Spanier Rodd & Abrams, LLP
212 East 39th Street
New York, New York 10016
(212) 889-3700
(800) 889-3701 (Toll Free)
Or e-mail [email protected]

SOURCE Abbey Spanier Rodd & Abrams, LLP