Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the securities of Facebook, Inc. from November 3, 2016 through October 4, 2021 (the “Class Period”). The lawsuit filed in the United States District Court for the Eastern District of New York alleges violations of the Securities Exchange Act of 1934.
If you purchased Facebook securities, and/or would like to discuss your legal rights and options please visit Facebook Inc. Shareholder Class Action Lawsuit or contact Rujul Patel toll free at (877) 779-1414 or firstname.lastname@example.org
According to the complaint, Facebook made materially false and misleading statements and omitted to disclose that: (1) Facebook misrepresented its user growth; (2) Facebook knew, or should have known, that duplicate accounts represented a greater portion of its growth than stated, and it should have provided more detailed disclosures as to the implication of duplicate accounts to Facebook’s user base and growth; (3) Facebook did not provide a fair platform for speech, and regularly protected high profile users via its Cross Check/XCheck system; (4) despite being aware of their use of Facebook’s platforms, the Company failed to respond meaningfully to drug cartels, human traffickers, and violent organizations; and (5) Facebook has been working to attract preteens to its platform and services.
On September 13, 2021, during trading hours, The Wall Street Journal (“WSJ”) published an article titled “Facebook Says Its Rules Apply to All. Company Documents Reveal a Secret Elite That’s Exempt.” It would be the first of nine articles published by the WSJ based on documents provided by a then-unknown whistleblower (the “Whistleblower”). On this news, Facebook shares dropped by $5.17 to close at $376.51 on September 13, 2021.
On September 28, 2021, during market hours, the WSJ published an article titled, “Facebook’s Effort to Attract Preteens Goes Beyond Instagram Kids, Documents Show.” On this news, Facebook share prices dropped $7.32 to close at $340.65 on September 28, 2021.
On October 3, 2021, CBS News aired a television segment on 60 Minutes interviewing the Whistleblower, revealed to be Frances Haugen, on her findings during her time at Facebook. On October 4, 2021, CBS News published an article titled, “Whistleblower’s SEC Complaint: Facebook Knew Platform Was Used to ‘Promote Human Trafficking and Domestic Servitude'”, which contained the whistleblower complaints against Facebook filed with the SEC. There were eight complaints shared in the CBS article. As a result of the October 3 and 4 revelations, Facebook’s share price dropped $16.78 per share, or approximately 4.9%, from closing at $343.01 on October 1, 2021, the prior trading day, to close at $326.23 on October 4, 2021.
If you wish to serve as lead plaintiff, you must move the Court no later than December 27, 2021. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased Facebook securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/facebookinc-fb-shareholder-class-action-lawsuit-fraud-stock-449/ or contact Rujul Patel toll free at (877) 779-1414 or email@example.com
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
Bernstein Liebhard LLP