A law firm has started a class-action suit over Facebook's IPO. The firm Kessler, Topaz, Meltzer & Check filed the suit in US District Court for the Southern District of New York on behalf of purchasers of Facebook shares. The complaint charges Facebook and certain of its officers, directors and underwriters with violations of the Securities Act of 1933. It alleges that the company and its underwriters failed to disclose and misrepresented material adverse facts about the company's results to potential investors. This includes a marked slowdown in revenue growth due to a growing number of Facebook users accessing the social network over mobile devices. In addition, the company failed to disclose during the IPO roadshow that some banks involved in the offering had downgraded their earnings estimates for Facebook. The suit alleges that this information was only told to select investors and not all potential shareholders.
