Hagens Berman Investigates Facebook Underwriter Revenue Selective Disclosure Ahead of IPO, Notifies Investors of Class Action
SAN FRANCISCO, May 23, 2012 /PRNewswire/ -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, today announced it is investigating Facebook, Inc. (NASDAQ: FB) ("Facebook") and its underwriters for possible violations of the federal securities laws following reports that Facebook's lead underwriter, Morgan Stanley (NYSE: MS), selectively disclosed revised Facebook revenue forecasts during its IPO road show.
Facebook stock was initially offered at a price of $38.00 on May 18, 2012, but subsequently fell in trading over the next several days. The stock closed at $31.00 on May 22, 2012, down a total of more than 18 percent from the initial offering price.
Hagens Berman is investigating whether Morgan Stanley (NYSE: MS), JP Morgan (NYSE: JPM), and Goldman Sachs (NYSE: GS) failed to disclose material facts about Facebook's revenue to investors in advance of the IPO, and whether this caused the stock to initially trade at an artificially high price.
"If the facts are true and Morgan Stanley and the other underwriters selectively disclosed Facebook's revised revenue forecasts, then the IPO was riddled with fraud," said Hagens Berman partner Reed R. Kathrein, who is leading the firm's investigation. "Such selective disclosure, simply put, is a relic of the past and would entitle those who were in the dark to their money back."
Investors should also be aware that a class action has been filed based on these press reports.
Investors who purchased or otherwise acquired shares of Facebook common stock and who have suffered substantial financial losses may contact Mr. Kathrein by calling (510) 725-3000.
Persons with knowledge that may help the investigation are encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities. The firm represents whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The firm's securities law blog is at www.meaningfuldisclosure.com.
Media Contact: Mark Firmani, Firmani + Associates, (206) 443 9357, Mark@firmani.com
SOURCE Hagens Berman Sobol Shapiro LLP
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