SOURCE: Stamell & Schager, LLP

June 01, 2012 19:13 ET

Stamell & Schager, LLP Initiate Class Action Lawsuit Against Facebook

NEW YORK, NY--(Marketwire - Jun 1, 2012) - Stamell & Schager, LLP 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-4332) on behalf of 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 either contacting Andrew R. Goldenberg, Esq. via email at or by visiting You may move the Court, no later than July 23, 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 realized that it would suffer a severe and pronounced reduction in revenue growth in the current year due to an increase of users of its Facebook mobile application or website through mobile devices rather than through traditional personal computers. The reduction was so pronounced that the Company told the Underwriter Defendants to materially lower their revenue forecasts for 2012. In addition, that Facebook failed to disclose in the Registration Statement and the Prospectus that, during the roadshow conducted in connection with the IPO, certain of the Underwriter Defendants reduced their second quarter and full year 2012 performance estimates for Facebook. These reductions were material information which was selectively disclosed by defendants to certain preferred investors, but was omitted from the Registration Statement and the Prospectus.

Stamell & Schager, LLP specialize in the fields of securities, corporate governance and consumer protection litigation. With over 40 years of experience, the firms' attorneys have established themselves as leading representatives of investor and consumer rights in these areas. The firms' attorneys have successfully litigated complex securities class actions in both state and federal courts through the United States and are committed to protecting investors' assets and victims of corporate wrongdoing.

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