NEW YORK, Dec. 07, 2021 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Facebook, Inc. (“Facebook” or the “Company”) (NASDAQ: FB). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 7980.
The investigation concerns whether Facebook and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On September 13, 2021, during trading hours, The Wall Street Journal (“WSJ”) published an article entitled “Facebook Says Its Rules Apply to All. Company Documents Reveal a Secret Elite That’s Exempt.” It would be the first of nine articles published by the WSJ based on documents provided by a then-unknown whistleblower (the “Whistleblower”).
Following publication of the article, Facebook’s stock price fell $5.17 per share to close at $376.51 per share on September 13, 2021.
Then, on September 28, 2021, during market hours, the WSJ published an article entitled “Facebook’s Effort to Attract Preteens Goes Beyond Instagram Kids, Documents Show.” Citing internal Facebook documents, the article reported, in part, that Facebook “formed a team to study preteens, set a three-year goal to create more products for them and commissioned strategy papers about the long-term business opportunities presented by these potential users.”
On this news, Facebook’s stock price fell $7.34 per share to close at $340.65 per share on September 28, 2021.
On October 3, 2021, CBS News aired a television segment on 60 Minutes interviewing the Whistleblower, revealed to be Frances Haugen, regarding her findings during her time employed at Facebook. On that same day, CBS published an article containing highlights from the interview, in which Haugen explained how “Facebook, over and over again, chose to optimize for its own interests, like making more money,” over the public good.
Then, on October 4, 2021, CBS News published an article entitled “Whistleblower’s SEC Complaint: Facebook Knew Platform Was Used to ‘Promote Human Trafficking and Domestic Servitude’”, which contained whistleblower complaints against Facebook filed with the U.S. Securities and Exchange Commission. The whistleblower complaints alleged, among other things, that Facebook knew that its platforms perpetuated misinformation but did little to stop it and that Facebook likewise did little to combat human traffickers using its platform.
Following these disclosures, Facebook’s stock price fell $16.78 per share, or 4.9%, to close at $326.23 on October 4, 2021.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980