MONTGOMERY, AL (WSFA) -
Former Alabama Attorney General Troy King is filing a Class Action lawsuit against social media giant Facebook, Inc. The suit is filed on behalf of investors who took advantage of the initial public offering of Facebook's stock and alleges violations of federal securities laws.
The Montgomery, Alabama based law firm of King & Nix, along with a second firm, Morgan & Morgan, filed the suit in the U.S. District Court for the Southern District of New York.
The suit alleges that the registration statement issued in connection with the IPO was false and misleading in violation of the federal securities laws.
It also contends that Facebook failed to disclose information that the company was experiencing, and anticipating, a significant drop in revenue due to an increase in Facebook users accessing the network through mobile devices.
Facebook raised more than $16 billion during its transition from a private to a publicly traded company.
"Nothing makes me angrier than to see Alabamians become the victims of corporate greed. This lawsuit is an effort to hold those responsible to account," said Mr. King.
Facebook, the world's largest social networking site, claims nearly 1 billion users as members of its network.
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