A class action lawsuit has been filed against Facebook on behalf of shareholders that bought company securities between 26 April and 25 July of this year. The lawyers supervising the case, Bronstein, Gewirtz & Grossman, are inviting investors to join if they qualify. The suit seeks to recover damages for alleged violations of the federal securities laws, alleging Facebook recent second quarter results show the company made false statements earlier about daily and monthly active user numbers and about its revenue and operating margin forecasts.
During the release of the results, Facebook CTO David Wehner said Facebook expected a revenue slowdown and lower operating margins in the second half, and that Facebook wanted to grow and promote experiences like Stories that currently have lower levels of monetization. The news sent Facebook shares spiralling almost 19 percent lower on 26 July. They have fallen further since.
“Facebook's public statements were materially false and misleading at all relevant times” during the period in question for the suit, the lawyers claim.
