Facebook, Inc. is a multinational technology company that offers the world's largest online social network.

According to the law firm press release, the Complaint charges Facebook and certain of its officers and directors with violations of the Securities Act of 1933 (“Securities Act”).

On or about May 16, 2012, Facebook filed with the SEC a Form S-1/A Registration Statement for the IPO. On or about May 18, 2012, the Prospectus, which forms part of the Registration Statement, became effective and Defendants sold 421 million shares of Facebook common stock to the public at $38 per share, for total proceeds of more than $16 billion.

The Complaint alleges that the Registration Statement and Prospectus issued in connection with the IPO were false and misleading and in violation of the Securities Act. The Complaint asserts that Defendants failed to disclose that because Facebook was experiencing a pronounced reduction in revenue growth (due to an increase of users of its Facebook app or website through mobile devices rather than traditional PCs), at the time of the IPO the Company had told the lead underwriters to reduce their 2012 performance estimates for Facebook. These revisions were material information which was not shared with all investors, but rather, was selectively disclosed by Defendants to certain preferred investors and omitted from the Registration Statement and/or Prospectus.

On October 4, 2012, the United States Judicial Panel on Multidistrict Litigation issued a Transfer Order transferring this action and all related cases to the Southern District of New York.

On December 6, 2012, an opinion and order was issued by the court appointing the Institutional Investor Group as lead Plaintiff of the Securities Actions and its choice of co-lead counsel was approved. The NASDAQ Claimant Group was appointed the lead Plaintiff of the NASDAQ Actions and its choice of lead Counsel was approved. The NASDAQ Negligence Parties will act as co-lead Plaintiff of the NASDAQ Actions and its choice of co-lead Counsel was approved on a interim basis.

On February 13, 2013, the Court issued an Order granting in part the Facebook Defendants' motion to dismiss on the grounds of standing and ripeness. As a result, the Derivative Plaintiffs' motions to remand were denied as moot. Plaintiffs were given leave to replead within twenty days.

On February 28, 2013, Lead Plaintiffs filed a consolidated Complaint.

On December 29, 2015, the Court granted Plaintiffs' motions for class certification.

On February 26, 2018, the Parties entered into a Stipulation of Settlement and the Court issued an Order preliminarily approving the Settlement. On April 11, the Court issued an Order approving the Distribution Plan pursuant to the Plan of Allocation. On November 26, the Court granted final approval of the Settlement and entered Final Judgment. On November 28, the Court issued an Order awarding attorneys' fees and expenses. On December 21, a notice was filed appealing the Court's approval of the Settlement. On October 15, 2020, the Court of Appeals affirmed the District Court's decision approving the Settlement. The Court approved the Settlement's Distribution Plan on June 1, 2021.