NEW YORK, Dec. 12, 2016 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Facebook, Inc. (“Facebook” or the “Company”) (NASDAQ: FB ) and certain of its officers, and is on behalf of shareholders who purchased or otherwise acquired Facebook securities between April 1, 2015 and November 16, 2016, both dates inclusive (the “Class Period”). Such investors are advised to join this case by visiting the firm’s site: http://www.bgandg.com/fb .
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.
Around 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. Following the November 3, 2016 announcement of expected reduction in ad revenue and capital expenditures, Facebook stock dropped sharply. The company continued to drop the next day and fell below $4 billion dollars on November 4, 2016.
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.bgandg.com/fb or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Facebook you have until January 23, 2017 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact: Bronstein, Gewirtz & Grossman, LLC Peretz Bronstein or Yael Hurwitz 212-697-6484 | info@bgandg.com
