Courtesy of Benzinga.
Klafter Olsen & Lesser has filed a securities class action complaint against Facebook (NASDAQ: FB), certain of its officers, and the lead underwriters of its May 18, 2012 Initial Public Offering in the U.S. District Court for the Southern District of New York (Civil Action No. 12-cv-4194) on behalf of all persons or entities who purchased the Class A common stock of Facebook pursuant to the IPO, except for defendants and certain entities that were informed by Defendants of the material information concealed from Plaintiff and the class.
Specifically, Plaintiff alleges that Facebook informed analysts at the lead underwriters, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, and Goldman Sachs & Co. to materially lower their financial estimates for Facebook’s second quarter of 2012 which information was only conveyed by the underwriter defendants to a select few of their customers and that the disclosures in the Registration Statement and Prospectus for the IPO were woefully inadequate to disclose this material information. Plaintiff further alleges that as this news began to come out on May 21 and 22, 2012, Facebook stock lost 18 percent of its value, causing investors approximately $2.5 billion in losses.
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