March 16, 2017 - The case was voluntarily dismissed.

November 22, 2016 (Shareholders Foundation) - An investor in shares of Facebook Inc (NASDAQ:FB) filed a lawsuit in the U.S. District Court for the District of Nevada over alleged violations of Federal Securities Laws by Facebook Inc in connection with certain allegedly false and misleading statements made between April 1, 2015 and November 16, 2016.

According to the complaint the plaintiff alleges on behalf of purchasers of Facebook Inc (NASDAQ:FB) common shares between April 1, 2015 and November 16, 2016, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that on or about May 2014, Facebook introduced new advertising and content “metrics” designed to, among other things, to help advertisers “better understand how people respond to [their] videos on Facebook,” to measure results from its paid advertising products, and to allow advertisers to measure the performance of their Facebook ads and campaigns, and that on or about April, 2015, Facebook internally began to discover errors with the calculation of the advertising and content metrics, but concealed such information from the public and failed to include it in SEC filings.

The plaintiff said that it was not until on or about September 23, 2016, Facebook publically admitted that it found an error in its video advertising metric that inflated the duration measurement of paid video advertisements, but downplayed its significance, provided contradictory information regarding the error, and failed to disclose additional errors in the Facebook metrics.

The plaintiff claims that on or about September 30, 2016, Facebook filed in quarterly earnings statement with the Securities Exchange Commission (“SEC”), but did not include any mention of the ad metric miscalculation, nor its likely affect on ad revenue, which comprised approximately 97% of Facebook’s revenue for 2016.

The plaintiff alleged that it was not until on or about November 3, 2016, that Facebook announced that it expects a significant decrease in ad revenue, and growth in the coming year, and that the company expects to significantly increase capital investment by taking on more debt, and that once the truth regarding the ad metrics was revealed, and the expected impact the error would have on Facebook’s future revenue, stock prices continued to drop significantly resulting in significant losses to Facebook shareholders.

Shares of Facebook Inc (NASDAQ:FB) declined from $133.28 per share in late October 2016 to as low as $113.55 per share on November 14, 2016.