No class has been certified in the above action yet. Until certification occurs, you are not represented by an attorney. You may choose to take no action and remain a passive class member.
The class action lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
The Complaint alleges that Facebook introduced its new advertising and content "metrics," aimed to assist advertisers measure results for paid advertising products and to "better understand how people respond to (their) videos on Facebook," by measuring the performance of their paid Facebook ads and campaigns. Facebook publicized its new advertising metrics as a valuable tool to assess the success of the paid campaigns and advertisements. Even after ad companies' heavy criticism to be more transparent, Facebook still did not have any third-party independently overseeing or calculating the accuracy of the data and new metrics.
The lawsuit alleges that on or about April 1, 2015, Facebook found errors with the advertising and content metrics, but hid this information from the investing public and did not disclose these errors in its SEC filings. With knowledge of the errors, defendants sold a substantial amount of Facebook shares for profit. Facebook publicly admitted that it found errors in its video advertising metric, that it had exaggerated its average viewing time metric, downplayed its significance, gave inconsistent information about the error, and failed to disclose additional information about the errors in its metrics. Facebook did not alert investors of the substantial affect the miscalculation would have on ad revenue in the future. On Nov. 3, 2016, Facebook announced it expected a significant decrease in ad revenue and growth in the coming year. Immediately following the announcement, the value of Facebook stock fell approximately $4 billion. Once the truth regarding the ad metrics was revealed to the public, stock prices continued to drop.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm's site: http:/www.egletlaw.com/facebook
About Eglet Prince
Eglet Prince has successfully represented thousands of clients. The firm is best known for its multimillion-dollar verdicts, including two verdicts in excess of $500 million against a pharmaceutical company. The attorneys at Eglet Prince are experienced trial lawyers and have successfully handled complex litigation, mass tort litigation and class actions. Eglet Prince is located at the Robert T. Eglet Advocacy Center at 400 South 7th Street in downtown Las Vegas, Nevada 89101.
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SOURCE Eglet Prince