Abbey Spanier Sues Facebook Inc And Underwriters Involved In Initial Public Offering

Abbey Spanier Rodd & Abrams, LLP specializing in class action suits, announced that it filed a class action lawsuit alleging that Facebook, Inc. (Facebook or the Company), Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Goldman Sachs & Co., Merrill Lynch, Pierce Fenner & Smith Incorporated, and Barclays Capital Inc. all failed to provide accurate information about Facebook's decline in earnings growth to all Facebook investors prior to the Company's Initial Public Offering (IPO). The complaint, filed in the United States District Court for the Southern District of New York (12-cv-4157) alleges while Facebook executives were out and about on the road show leading up to the IPO, the Company guided the underwriters to materially lower their earnings forecast for 2012, leading the underwriters to reduce Facebook's earnings estimates for the second quarter and full fiscal year 2012. These revisions were material information which was not shared with all Facebook investors. The action was commenced on behalf of all persons and/or entities who purchased or otherwise acquired Facebook common stock pursuant to and/or traceable to the Company's initial public offering. Plaintiffs bring this action under the Securities Act of 1933. The lawsuit seeks class actions status and monetary damages.