Facebook hit with suit
A law firm called Kessler Topaz Meltzer & Check, LLP has announced that it has filed a class-action lawsuit against Facebook in the United States District Court for Southern District of New York on behalf of those that purchased stock in Facebook's IPO. Facebook's IPO was on May 18 and according to the complaint Facebook and certain officers, directors and underwriters violated the Securities Act of 1933.
The legal firm claims that the company and underwriters failed to disclose the fact that Facebook is experiencing severe and pronounced reduction in revenue growth due to people moving to mobile apps to access the site. The suit is seeking a lead plaintiff that has to be certified by the court as having complaints similar to those of the class. The suit is seeking damages from Facebook.