Stay up-to-date with the latest developments in securities law through access to both news and all statutes and regulations. Find relevant corporate filings through a searchable EDGAR database. And...
Facebook Inc. faces an investor class action over slowing revenue and user growth after the social networking platform suffered a one-day loss in value of nearly $120 billion.
Facebook stock fell around 20 percent after the company July 26 announced revenues and user growth below what was expected, investors said in a putative class action filed July 27. The company, CEO Mark Zuckerberg, and Chief Financial Officer David Wehner misled investors about user growth expectations and projected revenues, according to the complaint filed in the U.S. District Court for the Southern District of New York.
The Menlo Park, Calif.-based social platform has faced significant criticism in recent months over data privacy — particularly its past relationship with Cambridge Analytica, a data firm that used profile information obtained via a Facebook application as part of its work on President Donald Trump’s 2016 campaign. These concerns might have played into a decline in user growth, according to a Bloomberg report.
Facebook touted its daily and monthly active user figures without mentioning that they were in decline, the investors said. The company also misled investors about the potential ad revenue of Facebook’s new Stories feature, according to the complaint.
The company, which didn’t immediately respond to a Bloomberg Law request for comment, faced similar investor suits after the Cambridge Analytica news broke in March, followed by a stock drop. Facebook placed some of the blame for its recent poor performance on new European data privacy laws, according to a Bloomberg report.
The case is Kacouris v. Facebook Inc. , S.D.N.Y., No. 1:18-cv-06765, complaint filed 7/27/18 .
To contact the reporter on this story: Jennifer Bennett in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Seth Stern at email@example.com
Copyright © 2018 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)