Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Facebook, Inc. (“Facebook” or the “Company”) (NASDAQ: FB) on behalf of Joint stockholders. Our investigation concerns whether Facebook has violated the federal securities laws and/or engaged in other unlawful business practices.
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Between September 13, 2021 and October 3, 2021, The Wall Street Journal released a series of nine articles alleging that Facebook had been misleading investors regarding its business operations. The allegations were based on internal documents provided by a whistleblower. On October 4, 2021, CBS’s segment 60 Minutes spoke with the whistleblower and published the whistleblower’s SEC whistleblower complaints. On October 5, 2021, the whistleblower testified before Congress concerning Facebook’s misleading statements and omissions of material fact.
Among the numerous allegations, the internal documents show that: (1) Facebook misled investors regarding how its “Cross Check” or “XCheck” system actually functioned, which in reality gave preferential treatment to Facebook’s ‘VIP’ users; (2) despite its outward facing policy of disallowing users under the age of 13, Facebook was internally researching pre-teen users and their engagement with certain Facebook services, and how to turn those users into long-term users; (3) despite Facebook’s stated policy of making its services as safe as possible, Facebook lagged in its response to drug cartels and human traffickers using its services; (4) Facebook misrepresented its negative impact on teens’ mental health, particularly in teen girls; (5) Facebook misled investors and advertisers by inflating its shrinking user base; and (6) Facebook misrepresented its role in fomenting ethnic violence and division.
Between September 13, 2021 and October 5, 2021, Facebook share prices dropped by $48.72, or over 12%, to close on October 5, 2021 at $332.96.
If you purchased or otherwise acquired Facebook shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Alexandra Raymond by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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