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IPO Underwriters Morgan Stanley, J.P. Morgan and Goldman Sachs Make Last-Minute Disclosures to Select Investors
Levin, Papantonio, Thomas, Mitchell, Rafferty & Proctor, P.A. is investigating claims of securities fraud in connection with the Facebook (NASDAQ:FB) Initial Public Offering (“IPO”).
According to recent reports, the underwriters of the Facebook IPO - a group including Morgan Stanley, Goldman Sachs Group, Inc., and JP Morgan Chase & Co. (“Brokerage Firms”) - internally cut revenue projections for Facebook’s 2012 earnings, but this information was only passed along to select large investors including hedge funds clients.
On its second day of trading, Monday, May 21, Facebook’s stock plunged 11%, followed by another dive of almost 9% on Tuesday, May 22, 2012.
Both the Securities Exchange Commission (“SEC”) and Financial Industry Regulation Authority (“FINRA”) announced a review of Facebook’s IPO issues. Pursuant to securities industry standards like FINRA’s rule 2010, broker-dealers have an obligation of full disclosure and complete candor.
Accordingly, the Brokerage Firms may have violated their duties by revising their projections and not disclosing it to all of their customers – a move that certainly led to a loss for many Facebook investors..
Established in 1955, Levin, Papantonio, Thomas, Mitchell, Rafferty & Proctor, P.A. is “AV” rated with more than thirty attorneys and 175 support staff spanning a wide range of legal areas and considered one of the preeminent law firms in Florida. Founding partner Reubin Askew is a former two-term governor of Florida and candidate for President of the United States.
Securities fraud attorney and Levin, Papantonio, Thomas, Mitchell, Rafferty & Proctor, P.A. partner Peter Mougey chairs the firm’s Securities Department, he’s also past-president of the Public Investors Arbitration Bar Association (PIABA), a national securities organization for securities fraud attorneys.
In the past twenty-five years, the firm has received more than seventy-five jury verdicts in the amount of one million dollars or more, including twelve jury verdicts in excess of ten million dollars, and two in excess of $450 million.
In total, the firm’s total verdicts exceed more than $2.5 billion dollars.
The Levin, Papantonio, Thomas, Mitchell, Rafferty & Proctor, P.A. Securities Department currently represents dozens of state and pension funds and municipalities that manage more than $30 billion on behalf of their constituents. Additionally, Levin, Papantonio, Thomas, Mitchell, Rafferty & Proctor, P.A. securities attorneys represent more than 1,000 investment fraud victims across the country in state and federal court and securities industry arbitration.
If you purchased Facebook shares on the IPO or in the first few days of trading from JPMorgan, Morgan Stanley or Goldman Sachs, please fill out the evaluation form to the right, call our office at 855-345-1554, or email our experienced investment and stockbroker fraud lawyers today.
We'll quickly evaluate your claim for no cost and determine if any scam or fraud regarding your Facebook stock purchase took place.