Harwood Feffer LLP Files Class Action on Behalf of Purchasers of Facebook Inc. Common Stock Against Facebook’s Lead Underwriters
NEW YORK, May 29, 2012 /PRNewswire/ — The law firm of Harwood Feffer LLP announces that it filed a class action lawsuit on May 25, 2012 (Case No. 12-cv-4215) on behalf of purchasers of the common stock of Facebook Inc. (the ACompany@) (NASDAQ:FB) through its initial public offering. Shareholders may obtain a copy of the complaint by calling our offices or emailing us at the e-mail addresses listed below. The action is pending in United States District Court for the Southern District of New York and is brought against the Company’s three lead underwriters — Morgan Stanley & Co., LLC, J.P. Morgan Securities LLC, and Goldman Sachs & Co.
The lawsuit alleges that the three underwriters knew that the market for the Company’s shares was weaker than the public believed by virtue of their having advised certain of their major clients to reduce their requests for allocations of the Company’s shares due to certain weaknesses of the Company’s prospects of which they were aware. Notwithstanding this material non-public information about market interest, the lead underwriters (a) increased to the highest end of the proposed range the Company’s share price and (b) increased by 25% the number of shares sold in the offering. By selling short into the market their 15% over-allotment while in possession of such material, non-public information, the lead underwriters violated Section 20A of the Securities Exchange Act of 1934.
If you bought the Company’s stock in its initial public offering, you may move the Court, no later than July 24, 2012, to appoint you as lead plaintiff, a representative party that acts on behalf of other class members. The Court must determine whether the class member’s claim is typical of other members’ claims, and whether the class member will adequately represent the class. Your ability to recover is not, however, affected by your decision whether or not to serve as a lead plaintiff.
Harwood Feffer has taken a leading role in many important actions on behalf of defrauded shareholders and has recovered hundreds of millions of dollars in those efforts. The Harwood Feffer website (www.hfesq.com) has more information about the firm. If you wish to discuss this action with us or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
SOURCE Harwood Feffer LLP