SOURCE: Kaplan Fox & Kilsheimer LLP

June 01, 2012 18:00 ET

Kaplan Fox Files Securities Class Action on Behalf of Purchasers of Facebook, Inc. Common Stock

NEW YORK, NY--(Marketwire - Jun 1, 2012) - Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has filed a class action suit against Facebook, Inc. ("Facebook" or the "Company") (NASDAQ: FB), certain Company executives and/or directors, including Chairman and CEO Mark Zuckerberg, and certain underwriters. The Complaint alleges violations of the Securities Act of 1933 and is brought on behalf of all persons or entities who purchased shares of Facebook's Class A common stock issued in connection with Facebook's May 18, 2012 initial public offering ("IPO") through May 21, 2012.

The case is pending in the United States District Court for the Southern District of New York. A copy of the Complaint may be obtained from Kaplan Fox or the Court.

The Complaint alleges that statements in Facebook's Registration Statement and Prospectus that use of Facebook through the Company's mobile products as a substitute for use on personal computers may negatively affect the Company's revenue and financial results were untrue statements of material fact and/or omitted to state material facts required to be stated therein or necessary to make the statements therein not misleading because, at the time of the IPO, users' access of Facebook through mobile products had already materially negatively affected Facebook's revenue and earnings and caused Facebook to materially reduce its revenue and earnings estimates for the quarter ending June 30, 2012 and for full years 2012 and 2013.

The Complaint further alleges that prior to the IPO, certain of the Underwriter Defendants materially lowered their revenue and earnings estimates for Facebook's quarter ending June 30, 2012 and full years 2012 and 2013, but the material information about Facebook's revenue and earnings was not disclosed in the Registration Statement.

On May 22, 2012, the price of Facebook's Class A common stock declined from a closing price on May 21, 2012 of $34.03 per share to close at $31 per share, a decline of $3.03 per share or approximately 9%, down more than 18% from the $38 per share IPO price on May 18, 2012.

If you are a member of the proposed Class, you may move the court no later than July 23, 2012 to serve as a lead plaintiff for the Class. You need not seek to become a lead plaintiff in order to share in any possible recovery.

Plaintiff seeks to recover damages on behalf of the Class and is represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions and actions involving fraud. For more information about Kaplan Fox & Kilsheimer LLP, or to review a copy of the complaint filed in this action, you may visit our website at www.kaplanfox.com.

Contact Information

  • If you have any questions about this Notice, the action, your rights, or your interests, please contact:

    Jeffrey P. Campisi
    KAPLAN FOX & KILSHEIMER LLP
    850 Third Avenue, 14th Floor
    New York, New York 10022
    (800) 290-1952
    (212) 687-1980
    Fax: (212) 687-7714
    E-mail address: jcampisi@kaplanfox.com

    Laurence D. King
    KAPLAN FOX & KILSHEIMER LLP
    350 Sansome Street, Suite 400
    San Francisco, California 94104
    (415) 772-4700
    Fax: (415) 772-4707
    E-mail address: lking@kaplanfox.com