GG Launches Facebook Legal Investigation
May 23, 2012
Law Firm Investigates Possible Federal Securities Law Violations on Behalf of Investors in Facebook, Inc. (NASDAQ: FB)
SAN FRANCISCO, CA –The law firm of Gibbs Law Group LLP today announced that it is investigating Facebook, Inc. (NASDAQ: FB) for possible violations of federal securities laws. The Facebook legal investigation focuses on reports that the company’s offering documents failed to adequately disclose Facebook’s future business prospects and earnings potential.
Facebook debuted at a highly-anticipated initial public offering last week, selling 421 million shares for $38 per share. But in the days following the IPO, the company’s stock price dropped by nearly 18% to about $31, well below its initial offering price. News outlets subsequently reported that some of its underwriters, including Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, and Goldman, Sachs & Co., cut their initial earnings forecast for the company immediately prior to the IPO and only shared their new numbers with a select group of large investors.
“Reports that the underwriters cut their earnings forecasts in the middle of the IPO roadshow are very unusual and material information for investors,” said attorney Jonathan Levine of Gibbs Law Group. “The reports that the lead underwriters shared this critical information with only a handful of their biggest clients are very troubling.”
Gibbs Law Group is investigating whether Facebook, its officers and directors or its underwriters have violated the federal securities laws by failing to disclose material information to investors. If you invested in Facebook common stock and would like to learn more about this investigation, or have questions concerning your legal rights, contact Gibbs Law Group at (866) 981-4800 or visit our website: Gibbs Law Group Facebook Legal Investigation.
Gibbs Law Group LLP is one of the nation’s leading firms representing investors, employees, consumers and small businesses in cases involving consumer protection, personal injury, securities, antitrust, and employment laws. The firm’s senior partners, Daniel Girard and Eric Gibbs, have been selected for inclusion in The Best Lawyers in America® 2012 and Northern California Super Lawyers, and have earned AV-Preeminent ratings from Martindale-Hubbell, recognizing them in the highest class of attorneys for professional ethics and legal skills.