A lawsuit was filed on behalf of investors in Meta Platforms, Inc. (NASDAQ:FB) shares over alleged securities laws violations.
San Diego, CA — (SBWIRE) — 03/21/2022 — An investor, who purchased shares of Meta Platforms, Inc. (NASDAQ: FB), filed a lawsuit over alleged violations of Federal Securities Laws by Meta Platforms, Inc. fka Facebook.
Investors who purchased shares of Meta Platforms, Inc. (NASDAQ: FB) have certain options and for certain investors are short and strict deadlines running. Deadline: May 9, 2022. NASDAQ: FB investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 – 1554.
In June 2020, Apple announced that it would roll out a host of changes to the iOS operating software that would essentially cut off Facebook and its sister services from almost all the tracking abilities and information that they need to sell targeted ads as they had been for many years. It was such a drastic change that it would derail Meta’s extraordinary price-to-earnings ratio and high revenue growth trajectory into something more in line with a classic slow-growth media company. However, beginning in March 2021 (shortly before Apple’s changes went into effect), and until February 2022, Meta and its upper management misled investors about its mitigation efforts to counteract the impact that Apple’s changes would have on its ad business.
Despite acknowledging that Apple’s changes would create “headwinds” to its ad business, Meta painted a false and misleading picture about the effectiveness of mitigation efforts it put in place to counteract the changes. The efforts that were touted included, among other things, requiring less data in targeted ad campaigns; claims that Meta was building other data sources that advertisers could make use of; having more onsite conversion opportunities for advertisers; closing a supposed “underreporting gap” to identify a supposedly more robust and more accurate return on investment for advertisers; and automation to allow advertisers to leverage machine learning to find audiences for targeted ad campaigns. As later revealed, these mitigation efforts were ineffective.
On February 2, 2022, Meta Platforms, Inc. held an earnings call for the fourth quarter of fiscal year 2021. During that call, Meta Platforms, Inc disclosed that the mitigation efforts in fact had not rendered the effects of the iOS changes “manageable.” Instead, Meta Platforms, Inc’s advertising business would suffer a shattering $10 billion revenue hit from the iOS privacy changes. These admissions, as well as Meta’s acknowledgment of the negative impacts from TikTok, caused over 26% of Meta’s market capitalization to be
Shares of Meta Platforms, Inc. (NASDAQ: FB) declined from $32.8 per share on February 2, 2022, to as low as $185.82 per share on March 14, 2022.
The plaintiff claims that between March 2, 2021 and February 2, 2022, Meta Platforms, Inc and its senior executives knowingly or recklessly failed to tell investors that (1) Apple’s iOS privacy changes were having a material impact on Meta’s ability to provide the kind of targeted advertising that its customers wanted and, as a result, customer ad spending was dropping precipitously; (2) Meta’s mitigation efforts were either not properly implemented or ineffective; (3) measurement of ads was not accurate as mitigation efforts were failing; and (4) Meta did not have a plan in place to properly address the impact of the iOS privacy changes.
Those who purchased shares of Meta Platforms, Inc. (NASDAQ: FB) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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