Facebook Class Action Lawsuit: $37 Billion in Losses and counting
Did you buy Facebook shares on IPO?
Did you lose money?
Facebook (Nasdaq:FB) is being investigated by our law firm for violations of the Securities Exchange Act. Facebook and its underwriters apparently changed FB's earnings guidance to certain investors before the IPO. This may be a massive securities fraud case, one of the greatest in history.
It appears that Facebook, and its underwriters JP Morgan and Goldman Sachs greatly overstated the projected earnings of Facebook and secretly told favored intuitional investors that they were cutting earnings forecasts before the IPO. As a consequence buyers on the IPO may have been misled, while other insiders knew to sell. This may be open securities fraud, the underwriters and Facebook by selectively disseminating material information to different groups of investors altered the market and enabled some investors to sell while others were scrambling to buy. It also may explain the massive fluctuation on the IPO and the massive drop in value the days after the IPO.
This may amount to material misrepresentation to the millions of small investors in the IPO resulting in Billions in fraud.
The Facebook debacle may go down as one of the greatest swindles in the history of American business, even before the latest troubling disclosures the offer price of $38 per share was a staggering 85 times earnings.
As of this writing FB's market value has already been wiped out by more than $37 billion.
Did you sustain losses? Upset? Kyros Law is investigating the allegations on behalf of FB shareholders, please call us now.
If you are a shareholder of FB please call Attorney Bill Kyros at 1-800-934-2921 to discuss your rights.
Kyros Law is a Boston-based law firm with significant experience representing investors in shareholder class actions, shareholder derivative actions, and securities fraud class actions. For info about our law firm please our Kyros Law web site