Facebook, Inc. (NASDAQ: FB)
On March 17, 2018, the New York Times reported Cambridge Analytica “harvested private information from the Facebook profiles of more than 50 million users without their permission, according to former Cambridge employees, associates and documents, making it one of the largest data leaks in the social network’s history.” This news drove the price of Facebook shares down $12.53, or about 6.8%, to close at $172.56 on March 19, 2018.
When news outlets reported the U.S. Federal Trade Commission is investigating possible violations of a consent decree and British law makers want to “hear from a senior Facebook executive with the sufficient authority to give an accurate account of this catastrophic failure of process” the price of Facebook shares fell another $7.32, or about 4.5%, to close at $164.83 on March 20, 2018. Since then, the price of Facebook shares continued to fall.
“We’re focused on defendants’ boilerplate risk disclosures, the FTC consent decree, the impact on Facebook’s future prospects, and on investors’ enormous losses,” said Hagens Berman partner Reed Kathrein.
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 510-725-3000 or email FB@hbsslaw.com.
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