Kessler Topaz Meltzer & Check, LLP Announces the Filing of a Securities Fraud Class Action Lawsuit Against Meta Platforms, Inc. (NASDAQ: FB) f/k/a Facebook, Inc.
RADNOR, Pa.–(BUSINESS WIRE)–$FB–The law firm of Kessler Topaz Meltzer & Check, LLP informs investors that the firm has filed a securities class action lawsuit against Meta Platforms, Inc. f/k/a Facebook, Inc. (“Facebook”) (NASDAQ: FB) on behalf of investors who purchased or acquired Facebook common stock between April 29, 2021, and October 21, 2021, inclusive (the “Class Period”). This action, captioned Barry G. Depot v. Meta Platforms, Inc. f/k/a Facebook, Inc., et al., Case No. 4:21-cv-08873 (the “Depot Action”), was filed in the United States District Court for the Northern District of California.
There is another related class action case pending against Facebook in the United States District Court for the Eastern District of New York. That first-filed action issued a notice of its filing pursuant to the federal securities laws which triggered the deadline of December 27, 2021 for Facebook investors to seek to be appointed as a lead plaintiff representative of the class. The filing of the Depot Action does not change the December 27, 2021 lead plaintiff deadline.
CLICK HERE TO SUBMIT YOUR FACEBOOK LOSSES
LEAD PLAINTIFF DEADLINE: December 27, 2021
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
James Maro, Esq. (484) 270-1453 or Toll Free (844) 887-9500 or Email at [email protected]
Facebook, headquartered in Menlo Park, California, is one of the world’s largest technology companies and operates through two business segments: (1) “Family of Apps,” which includes its Facebook, Instagram, Messenger, and WhatsApp platforms; and (2) “Reality Labs,” which includes augmented and virtual reality related consumer hardware, software, and content. On October 28, 2021, Facebook announced that it had changed its name from “Facebook, Inc.,” to “Meta Platforms, Inc.”
The Class Period commences on April 29, 2021, when Facebook filed its quarterly report for the first quarter of 2021 on a Form 10-Q. The Form 10-Q stated, “In response to the COVID-19 pandemic, we have focused on helping people stay connected, assisting the public health response, and working on the economic recovery. We have also continued to invest based on the following company priorities: . . . making progress on the major social issues facing the internet[;] . . . build new experiences that meaningfully improve people’s lives today[;] . . . [and] communicate more transparently about what we’re doing and the role our services play in the world.”
Thereafter, and throughout the Class Period, Facebook continued to tout its commitment and ability to prevent the spread of damaging misinformation, criminal activity, and other harmful content on its social media platforms.
Investors began to learn the truth about the defendants’ false and/or misleading statements on September 13, 2021, when The Wall Street Journal began publishing “The Facebook Files”—a series of articles based on documents provided to The Wall Street Journal and the United States Securities and Exchange Commission by Frances Haugen, a former Facebook employee. The Facebook Files revealed that, among other things, Facebook: (1) exempts notable users such as celebrities and politicians from its normal enforcement rules preventing users from engaging in harmful speech and misled its own Oversight Board about this practice; (2) has long been aware that its Instagram platform harms teenage users, including by negatively affecting their body image and increasing anxiety, depression, and suicidal thoughts; (3) made changes to its algorithm which resulted in angrier and more divisive content, and Facebook declined to correct this problem in order to prioritize increased user engagement; (4) decision makers have ignored warnings that its platforms are used to incite violence against ethnic minorities, lure vulnerable women into abusive situations, and recruit hit men, among other criminal conduct; and (5) executives, including Chief Executive Officer Mark Zuckerberg, have been unable to prevent the company’s platforms from actively undermining efforts to vaccinate people against COVID-19.
Following this news, the price of Facebook’s common stock declined $13.97 per share, or nearly 4% across five trading days, from a close of $378.69 per share on September 10, 2021, to close at $364.72 per share on September 17, 2021.
Thereafter, the truth was slowly revealed in a couple of additional news reports. Finally, after the markets closed on October 21, 2021, The Wall Street Journal reported that, based on internal company documents, Facebook “is struggling to detect and deal with users’ creating multiple accounts.” According to these documents, “the phenomenon of single users with multiple accounts [is] ‘very prevalent’ among new accounts” with “an examination of roughly 5,000 recent sign-ups on the service indicat[ing] that at least 32% and as many as 56% were opened by existing users.”
Following this news, the price of Facebook’s common stock declined $17.27 per share, or approximately 5%, from a close of $341.88 per share on October 21, 2021, to close at $324.61 per share on October 22, 2021.
The Depot Action alleges that, throughout the Class Period, the defendants repeatedly, falsely touted the company’s commitment and ability to prevent the spread of damaging misinformation, criminal activity, and other harmful content on its social media platforms, while simultaneously concealing its dependence upon toxic content and inauthentic accounts to drive revenues.
WHAT CAN I DO?
Facebook investors may, no later than December 27, 2021 seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member Kessler Topaz Meltzer & Check, LLP encourages Facebook investors who have suffered significant losses to contact the firm directly to acquire more information.
CLICK HERE TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. At the end of the day, we have succeeded if the bad guys pay up, and if you recover your assets.
For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)