BOSTON, June 20, 2012 /PRNewswire/ -- Block & Leviton LLP ( blockesq.com), a Boston-based law firm representing investors nationwide, announces that it has filed a securities class action lawsuit against Facebook Inc. (NASDAQ: FB), certain of the company's officers and directors, and the underwriters of Facebook's May 18, 2012 initial public offering (the "IPO"). The law firms Susman Godfrey and Hausfeld LLP also filed the complaint along with Block & Leviton.
The lawsuit, which is pending in the District Court for the Southern District of New York (case no. 1:12-cv-04648), alleges violations of U.S. securities laws on behalf of all persons who purchased the common stock of Facebook pursuant to the Company's IPO. The claims arise under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933. The complaint asserts that Facebook, certain of the company's officers and directors, and the underwriters of the IPO made materially untrue statements in the Offering Documents issued in connection with the IPO.
More specifically, the complaint alleges that, contrary to Defendants' public statements, Facebook was experiencing a severe and pronounced reduction in revenue growth due to an increase of users accessing the Facebook website through mobile devices. In light of these facts, Facebook told certain of the underwriters to materially lower their revenue forecasts for 2012, while continuing to tout Facebook's performance to the investing public. As details of the Defendants' misconduct emerged, Facebook's share price plummeted, falling from an initial offering price of $38.00 to less than $32.00. Numerous governmental agencies have also announced that they are investing allegations of impropriety involving Facebook's IPO.If you are a member of the Class, you may, no later than July 23, 2012, request that the court appoint you as Lead Plaintiff for the Class. You may contact the attorneys at Block & Leviton to discuss your rights in the case. You may also retain counsel of your choice and you need not take any action at this time to be a class member. Block & Leviton is a Boston-based law firm representing investors for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 50 years. Contact: BLOCK & LEVITON LLP email@example.com(617) 398-5600