Facebook Inc (NASDAQ:FB) Investor Investigationn Over Potential Violations Of Securities Laws

If you purchased shares of Facebook Inc (NASDAQ:FB) in the IPO from Morgan Stanley, Goldman Sachs, and JPMorgan and/ or purchased shares of Facebook Inc (NASDAQ:FB) and had issues with your order on NASDAQ, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Facebook
Affected Securities: 
NASDAQ: FB

May 22, 2012 (Shareholders Foundation) -- An investigation on behalf of investors in NASDAQ:FB shares over potential securities laws violations in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Facebook Inc (NASDAQ:FB) concerning whether certain statements about Facebook’s business, its prospects and its operations were potentially materially false and misleading at the time they were made.

Facebook Inc reported that its annual Revenue rose from $272million with a Net loss of $56million in 2008 to an annual Revenue of $3.71billion with a Net Income of $1billion in 2011.

Facebook Inc went public on May 18, 2012 with an IPO share price of $38 but it popped to a high of $42.025 per share.

However NASDAQ:FB shares closed on Friday at $38.07 per share.

On May 22, 2012, reports said the three banks, Morgan Stanley, Goldman Sachs, and JPMorgan, who will split about $176 million for managing the social-networking company’s initial public offering, all downgraded their earnings forecasts for Facebook Inc while it was still conducting its pre-IPO roadshow. A revised version that was released during the IPO roadshow sometime last week revealed huge revenue losses for Facebook and projected into late 2012. A former Merrill Lynch analyst said he's never heard of such thing happening before.

The investigation focuses on allegations that certain banks might have passed the information along to only a handful of institutional investors, without sharing it on a wider basis.

Two top U.S. financial regulators are reportedly reviewing the initial public offering of Facebook.

The U.S. Securities and Exchange Commission Chairman Mary Schapiro reportedly said to reported that they would be looking into problems surrounding the initial public offering.
The chairman of the Financial Industry Regulatory Authority reportedly said that the allegations are very serious and will be reviewed.

Following the IPO of Facebook the NASDAQ reportedly set aside money to compensate customers for issues with trading orders. Trading in Facebook shares on Friday was delayed by 30 minutes and left many investors in the dark about the status of their orders for more than two hours. A NASDAQ Stock Market official reportedly told customers that it would have pulled the plug on Facebook's IPO had it known the full extent of the technical problems that plagued its systems.

On Monday, May 21, 2012 NASDAQ:FB stocks fell to a close of$34.06 per share and dropped on Tuesday to a close of $31.13 per share.

One article said Facebook’s IPO is among the worst big U.S. IPO in 5 years.