Shareholders with $100,000 losses or more are encouraged to contact the firm
LOS ANGELES–(BUSINESS WIRE)–The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Meta Platforms, Inc. (“Meta” or the “Company”) (NASDAQ: FB) securities between March 2, 2021 and February 2, 2022, inclusive (the “Class Period”). Meta investors have until May 9, 2022 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On July 28, 2021, Meta held a conference call to discuss its second quarter 2021 financial results, during which Chief Financial Officer, David Wehner, stated that the Company “continue[s] to expect increased ad targeting headwinds in 2021 from regulatory and platform changes, notably the recent iOS updates, which we expect to have a more significant impact in the third quarter compared to the second quarter.”
On this news, the Company’s stock price fell $14.96 to close at $358.32 per share on July 29, 2021.
Then, on October 25, 2021, Meta held a conference call to discuss its third quarter 2021 financial results, during which management stated that the iOS changes led to two challenges: “One is that the accuracy of our ads targeting decreased, which decreased the cost of driving outcomes for our advertisers. And the other is that measuring those outcomes became more difficult.”
On this news, the Company’s stock price fell $12.88 to close at $315.81 per share on October 26, 2021.
Then, on February 2, 2022, after the market closed, Meta announced disappointing fourth quarter 2021 financial results, including earnings per share of $3.67, below estimates of $3.84 earnings per share. The Company also expected first quarter 2022 revenue between $27 billion and $29 billion, below analysts’ expectations of $30.25 billion. During a related earnings call, the Company disclosed that Apple’s iOS privacy changes had negatively impacted Meta’s advertising business.
On this news, the Company’s stock price fell $85.24, or 26.4%, to close at $237.76 per share on February 3, 2022, thereby injuring investors.
The complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose 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; and (5) as a result of the foregoing, Defendants’ public statements were materially false and misleading at all relevant times.
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If you purchased Meta securities during the Class Period, you may move the Court no later than May 9, 2022 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Meta securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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