SAN FRANCISCO, CA / ACCESSWIRE / November 17, 2021 / Hagens Berman urges Meta Platforms, Inc. f/k/a Facebook, Inc. (NASDAQ:FB) investors who purchased or otherwise acquired shares and who have significant losses to submit your losses now.
Class Period: Nov. 3, 2016 - Oct. 21, 2021
Lead Plaintiff Deadline: Dec. 27, 2021
Contact An Attorney Now: [email protected]
Facebook, Inc. (FB) Securities Fraud Class Action:
The Complaint alleges that Facebook: (1) misrepresented its user growth, (2) failed to disclose that duplicate accounts represented a greater percentage of growth than stated, (3) concealed that it failed to provide a platform for fair speech and regularly protected high profile users, (4) did not meaningfully respond to drug cartels, human traffickers, and violent organizations despite knowing about their use of the company's platforms, and (5) has prioritized commercial interests over safety by working to attract preteens to its platform and services.
A series of financial reporting shed light on Facebook's concealed business practices.
For example, on Sept. 13, 2021 the WSJ reported that the company built a system known as "cross check" or "XCheck," that has exempted high-profile users from some or all of its rules."
Then, on Sept. 28, 2021, WSJ reported Facebook built a team to target preteens and commissioned strategy papers about the long-term business opportunities presented by these users.
Later, on Oct. 3, 2021, CBS reported a whistleblower (Francis Haugen) revealed that Facebook knew that its algorithm, which optimizes for content that generates engagement, has led publishers to produce increasingly angry and divisive content to get more views. Nevertheless, for profit reasons, Facebook has refused to make safety changes to the algorithm.
On Oct. 4, 2021 CBS reported that Ms. Haugen filed eight whistleblower complaints with the SEC alleging Facebook (1) knew its platforms perpetuated misinformation, (2) did little to combat human traffickers on its platforms, (3) gave preferential treatment to high profile users, (4) misled investors about the extent its platform was used to foment ethnic violence and global division, and (5) inflated its advertising reach and user base in key demographics including in developed markets.
On Oct. 21, the WSJ published an article citing internal documents showing the use of duplicate accounts is "very prevalent" and which could render the company's ratio of daily users as inherently "less trustable." The next day The Washington Post reported an additional whistleblower came forward and filed a complaint with the SEC alleging misconduct similar to that alleged by Ms. Haugen.
These reports drove the price of Facebook shares sharply lower between Sept. 13 and Oct. 21, 2021.
"We're focused on investors' losses and proving Facebook lied about its user growth and commitment to public safety," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Facebook and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Facebook should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP