Facebook Harmed Investors With Misleading Statements, Annual Financial Reports, Says Class Action

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Facebook Stock Price Class Action Lawsuit Overview: 

• Who: Wee Ann Ngian filed a class action lawsuit against Facebook Inc. including CFO David M. Wehner and CEO Mark Zuckerberg. 
• Why: Ngian claims Facebook harmed investors by making misleading statements and filing misleading annual financial reports with the SEC. 
• Where: The class action lawsuit was filed in New York federal court.

Facebook harmed investors by filing misleading annual financial reports with the Securities Exchange Commission (SEC) and making false statements about its internal operations, a new class action lawsuit alleges. 

Plaintiff Wee Ann Ngian claims Facebook — including CFO David M. Wahner and CEO Mark Zuckerberg individually — misled the SEC about its user growth and how many of its user accounts were duplicates.

Ngian also alleges Facebook misled the public by claiming to provide a fair platform for speech, actively tried to attract pre-teens to the platform, and looked the other way as it was used for illicit operations such as human trafficking.

The plaintiff wants to represent a nationwide Class of investors who purchased shares of Facebook stock between Nov. 3, 2016 and Oct. 4, 2021.

Facebook Whistleblower Report Tanks Inflated Stock Price, Claims Class Action

Ngian says Facebook shares began to drop after the Wall Street Journal (WSJ) published the first of a series of nine stories detailing the company’s alleged misgivings on Sept.13. 

The WSJ stories were based on documentation provided by a then-anonymous whistleblower, later identified as Frances Haugen, a former employee. 

Ngian claims Facebook’s stock price dropped again following the release of another WSJ story on Sept. 28 and then again on Oct. 3 after Haugen was interviewed by CBS News. 

Facebook’s stock price took another hit after CBS News posted its own report on Facebook’s alleged nefarious activities on Oct. 4, according to the class action lawsuit. 

“As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages,” states the class action lawsuit. 

Ngian alleges Facebook is in violation of the Securities Exchange Act of 1934. She is demanding a jury trial and requesting Facebook be ordered to pay damages sustained by herself and all Class Members. 

It was recently announced that Facebook will pay the Department of Justice and Labor more than $14 million to settle claims it favored temporary visa holders by reserving jobs for them instead of giving them to US workers.

Are you a Facebook shareholder who suffered financial injury after the company’s alleged misgivings were revealed? Let us know in the comments! 

The plaintiffs are represented by Phillip Kim, Esq. and Laurence M. Rosen, Esq. of The Rosen Law Firm, P.A. 

The Facebook Stock Price Class Action Lawsuit is Ngian v. Facebook, Inc., Case No. 1:21-cv-05976, in the U.S. District Court for the Eastern District of New York.

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