Levi & Korsinsky announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of Florida on behalf of investors who purchased FriendFinder Networks, Inc. (“FFN” or the “Company”) (NASDAQ: FFN) pursuant and/or traceable to the Company’s Registration and Prospectus issued in connection with the Company’s May 11, 2011 initial public offering (the “IPO” or the ‘Offering”).
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According to the Company’s Registration Statement and Prospectus, there would be approximately 26.7 million common shares outstanding after the May Offering, including at least 20.9 million shares subject to a 180-day lock-up period, during which the shares could not be traded (the “Restricted Shares”). The complaint alleges that these statements were false and misleading when made because a material number of the Restricted Shares were publicly traded during the lock-up period. Furthermore, the complaint alleges that the Company was suffering from deficient internal controls and was, therefore, unable to abide by the terms of the Registration Statement and Prospectus.
If you suffered a loss in FFN you have until January 16, 2012 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff. To obtain additional information, contact Joseph E. Levi, Esq. either via email at email@example.com or by telephone at (877) 363-5972, or visit http://www.zlk.com/friendfinder-networks-ffn.html.Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation. Attorney advertising. Prior results do not guarantee similar outcomes.