The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Facebook, Inc. (NASDAQ: FB) who purchased shares between October 1, 2017 and July 26, 2018. The action, which was filed in the United States District Court for the Northern District of California, alleges that the Company violated federal securities laws.
In particular, the FB lawsuit alleges 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.
Shareholders have until September 25, 2018 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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