Pittsburgh Law Office of Alfred G. Yates Jr., PC Files Class Action Lawsuit On Behalf of Shareholders of Facebook, Inc. (FB)

PITTSBURGH, June 5, 2012 /PRNewswire/ -- Notice is hereby given by the Law Office of Alfred G. Yates Jr., PC that it has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of Facebook, Inc. ("Facebook") (NASDAQ: FB) common stock pursuant and/or traceable to the Company's May 18, 2012 initial public offering (the "IPO").  

If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Alfred G. Yates Jr., Esquire at 1-800-391-5164, toll free, or at [email protected] by e-mail. Please visit http://yatesclassactionlaw.com for more information. Any member of the putative 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. If you wish to serve as lead plaintiff, you must move the Court no later than July 23, 2012.

The complaint charges Facebook and certain of its officers and directors with violations of the Securities Act of 1933 ("Securities Act").

On or about May 16, 2012, Facebook filed with the SEC a Form S-1/A Registration Statement (the "Registration Statement") for the IPO.  On or about May 18, 2012, the Prospectus (the "Prospectus"), which forms part of the Registration Statement, became effective and defendants sold 421 million shares of Facebook common stock to the public at $38 per share, for total proceeds of more than $16 billion.

The complaint alleges that the Registration Statement and Prospectus issued in connection with the IPO were false and misleading in violation of the Securities Act.  The complaint asserts that defendants failed to disclose that because Facebook was experiencing a pronounced reduction in revenue growth due to an increase of users of its Facebook app or website through mobile devices rather than traditional PCs, at the time of the IPO the Company had told the lead underwriters to reduce their 2012 performance estimates for Facebook.  These revisions were material information which was not shared with all investors, but rather, was selectively disclosed by defendants to certain preferred investors and omitted from the Registration Statement and/or Prospectus.

Plaintiffs seek to recover damages on behalf of all purchasers of Facebook common stock pursuant and/or traceable to the Company's IPO (the "Class").

Contact:
Alfred G. Yates, Jr.
(412) 391-5164 or Toll Free: 1(800) 391-5164
website: http://yatesclassactionlaw.com
email: [email protected]

SOURCE Law Office of Alfred G. Yates Jr., PC

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