NEW YORK--(BUSINESS WIRE)--WHY: Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of Facebook, Inc. (NASDAQ: FB) resulting from allegations that Facebook may have issued materially misleading business information to the investing public.
SO WHAT: If you purchased Facebook securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. The Rosen Law firm is preparing a class action seeking recovery of investor losses.
WHAT TO DO NEXT: To join the prospective class action, go to http://www.rosenlegal.com/cases-register-2176.html or call Phillip Kim, Esq. toll-free at 866-767-3653 or email pkim@rosenlegal.com or cases@rosenlegal.com for information on the class action.
WHAT IS THIS ABOUT: Between September 13, 2021 and October 3, 2021, The Wall Street Journal released a series of nine articles alleging that Facebook had been misleading investors regarding its business operations. The allegations were based on internal documents provided by a whistleblower. On October 4, 2021, CBS’s segment 60 Minutes spoke with the whistleblower and published the whistleblower’s SEC whistleblower complaints. On October 5, 2021, the whistleblower testified before Congress concerning Facebook’s misleading statements and omissions of material fact.
Among the numerous allegations, the internal documents show that: (1) Facebook misled investors regarding how its “Cross Check” or “XCheck” system actually functioned, which in reality gave preferential treatment to Facebook’s ‘VIP’ users; (2) despite its outward facing policy of disallowing users under the age of 13, Facebook was internally researching pre-teen users and their engagement with certain Facebook services, and how to turn those users into long-term users; (3) despite Facebook’s stated policy of making its services as safe as possible, Facebook lagged in its response to drug cartels and human traffickers using its services; (4) Facebook misrepresented its negative impact on teens’ mental health, particularly in teen girls; (5) Facebook misled investors and advertisers by inflating its shrinking user base; and (6) Facebook misrepresented its role in fomenting ethnic violence and division.
Between September 13, 2021 and October 5, 2021, Facebook share prices dropped by $48.72, or over 12%, to close on October 5, 2021 at $332.96.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources or any meaningful peer recognition. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.
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