SOURCE: Hach Rose Schirripa & Cheverie, LLP

May 30, 2012 19:13 ET

Hach Rose Schirripa & Cheverie, LLP and the Law Offices of Jay Saltzman, P.C. Initiate Securities Lawsuit Against Facebook, Zuckerberg and Underwriters

NEW YORK, NY--(Marketwire - May 30, 2012) - Hach Rose Schirripa & Cheverie, LLP and the Law Offices of Jay Saltzman, P.C. filed a class action lawsuit against Facebook, Inc. ("Facebook" or the "Company") (NASDAQ: FB), its officers and underwriters in federal court in the Southern District of New York (No. 12-cv-4252) on behalf all persons who purchased Facebook common stock pursuant and/or traceable to the Company's May 18, 2012 initial public offering (the "IPO"). Investors who suffered a financial loss are encouraged to speak directly with the attorneys litigating this action by contacting Frank R. Schirripa, Esq. at (212) 213-8311, toll free (866) LAWS-USA, or via email at You may move the Court, no later than July 22, 2012, to appoint you as lead plaintiff, a representative party that acts on behalf of other class members.

The Complaint alleges that the defendants violated the federal securities laws by failing to publicly disclose that Facebook was experiencing a severe reduction in earnings growth and that, during the IPO roadshow, the Company advised the underwriters' analysts to materially lower their earnings forecasts for 2012. Accordingly, each of the lead underwriters internally reduced its second quarter and full year 2012 earnings estimates for Facebook and then selectively disclosed this information to certain large institutional investors -- without revising the Registration Statement and/or Prospectus. Facebook's underwriters then advised certain of their major clients to reduce their requests for allocations of the Company's shares. Despite this adverse material non-public information, the lead underwriters increased to the highest end of the proposed range the Company's share price and increased by 25% the number of shares sold in the offering.

We are continuing to investigate insider trading claims against selling shareholders prior to or into the IPO in violation of Section 20A of the Securities Exchange Act of 1934. The largest reported selling shareholders include Zuckerberg, Breyer, Accel Partners, DST Global Limited, Goldman Sachs, Tiger Global Management and Peter Thiel. If you believe you purchased Facebook shares or stock options from or traceable to these or other insiders you should contact us to discuss your rights.

Hach Rose Schirripa & Cheverie, LLP and the Law Offices of Jay Saltzman, P.C. both specialize in the fields of securities, corporate governance and consumer protection litigation. With over 75 years of combined experience, the firms' attorneys have established themselves as leading representatives of investor and consumer rights these areas. The firms' attorneys have successfully litigated complex class actions in both state and federal courts through the United States and are committed to protecting investors' assets and victims of corporate wrongdoing.

Contact Information

    Frank R. Schirripa, Esq.
    Hach Rose Schirripa & Cheverie, LLP
    185 Madison Avenue, 14th Floor
    New York, New York 10016
    Tel: (212) 213-8311
    Fax: (212) 779-0028
    Toll Free: (866) LAWS-USA
    E-Mail: Email Contact