Facebook, Inc. (NYSE: FB)
A class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of those who purchased shares of Facebook, Inc. (NYSE: FB), during the period between April 25, 2018 and July 25 (the "Class Period").
The lawsuit alleges the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the number of daily and monthly active Facebook users was declining; (2) due to unfavorable currency conditions and plans to promote and grow features of Facebook’s social media platform with historically lower levels of monetization, the Company anticipated its revenue growth to slow and its operating margins to fall; and (3) as a result, Facebook’s public statements were materially false and misleading.
On July 25, 2018, post-market, Facebook announced disappointing financial and operating results for the second quarter of 2018. Specifically, the Company reported revenues and numbers of daily and monthly active users that fell short of market expectations. Additionally, on a conference call held that day, Facebook’s chief financial officer, David M. Wehner, stated that the Company expects currency conditions “to be a slight headwind in the second half” and that the Company plans to further develop certain features of its platform, like Stories, that currently “have lower levels of monetization.”
Following these statements, Facebook’s share price fell from $217.50 per share on July 25, 2018 to a closing price of $176.26 on July 26, 2018—a $41.24 or a 18.96% drop.
If you are a current shareholder and/or purchased stock between April 25, 2018 and July 25 and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
Please Note: Neither the submission to nor the receipt of information by The Law Offices of Marc S. Henzel or one of its attorneys through this website constitutes an agreement by the firm to represent the individual and does not create an attorney-client relationship.