Class action on behalf of all persons and entities who purchased, or otherwise acquired, the publicly traded securities of Facebook, Inc. from October 1, 2017 through July 26, 2018, pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding Facebook's business and operations. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the implementation of the General Data Protection Regulation ("GDPR"), which was adopted by the European Union on or around April 14, 2016, would have a foreseeable and materially negative impact on use of the Platform, revenue growth, and profitability because the informed consent required by the GDPR resulted in many users rejecting Facebook's privacy policies and/or procedures and exposed a significant number of fake accounts on the platform; (ii) by May 25, 2018, Facebook's Platform use and revenue growth had already begun to decline as a result of Facebook's efforts to comply with the GDPR; (iii) the decline in Facebook's Platform use and the increase in costs as a result of complying with the GDPR had a materially adverse effect on Facebook's financial health, including its revenue and projected growth; and (iv) as a result, Facebook's public statements were materially false and misleading at all relevant times
|Lead Plaintiff Deadline:||September 25, 2018|
|Preliminarily Approved Settlement Fund:||TBD|
|Class Period:||October 1, 2017 - July 26, 2018|
November 1, 2017 - CNBC
"Facebook Reports Better-Than-Expected Q3 Results But Shares Fall on 2018 Expense Forecast"
April 25, 2018, - CNBC
"Facebook Earnings: $1.69 per Share, Vs. $1.35 Expected"
July 25, 2018, CNBC
"Facebook Plunges More Than 24 Percent On Revenue Miss and Projected Slowdown"
In stark contrast to Facebook's positive statements since November 2017, during the Second Quarter 2018 Conference Call, Zuckerberg admitted that Facebook had lost approximately 1 million monthly active users in Europe due to the implementation of GDPR.