NEW YORK, Aug. 6, 2018 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Facebook, Inc. ("Facebook" or the "Company") (NASDAQ: FB) of the September 25, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Facebook stock or options between April 25, 2018 and July 25, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/FB. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
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The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Facebook common stock between April 25, 2018 and July 25, 2018 (the "Class Period"). The case, Kacouris v. Facebook, Inc. et al, No. 1:18-cv-06765 was filed on July 27, 2018 and has been assigned to Judge Richard Joseph Sullivan.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the number of daily and monthly active Facebook users was declining; (2) due to unfavorable currency conditions and plans to promote and grow features of Facebook's social media platform with historically lower levels of monetization, the Company anticipated its revenue growth to slow and its operating margins to fall; and (3) as a result, Facebook's public statements were materially false and misleading.
On July 25, 2018, post-market, Facebook announced disappointing financial and operating results for the second quarter of 2018. Specifically, the Company reported revenues and numbers of daily and monthly active users that fell short of market expectations. Additionally, on a conference call held that day, Facebook's chief financial officer, David M. Wehner, stated that the Company expects currency conditions "to be a slight headwind in the second half" and that the Company plans to further develop certain features of its platform, like Stories, that currently "have lower levels of monetization."
Following these statements, Facebook's share price fell from $217.50 per share on July 25, 2018 to a closing price of $176.26 on July 26, 2018—a $41.24 or a 18.96% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Facebook's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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