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SAN FRANCISCO--([ BUSINESS WIRE ])--The law firm of [ Girard Gibbs LLP ] today announced that it is investigating Facebook, Inc. (NASDAQ: FB) for possible violations of federal securities laws. The [ Facebook legal investigation ] focuses on reports that the companyas offering documents failed to adequately disclose Facebookas future business prospects and earnings potential.

"The reports that the lead underwriters shared this critical information with only a handful of their biggest clients are very troubling."

Facebook debuted at a highly-anticipated initial public offering last week, selling 421 million shares for $38 per share. But in the days following the IPO, the companyas stock price dropped by nearly 18% to about $31, well below its initial offering price. News outlets subsequently reported that some of its underwriters, including Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, and Goldman, Sachs & Co., cut their initial earnings forecast for the company immediately prior to the IPO and only shared their new numbers with a select group of large investors.

aReports that the underwriters cut their earnings forecasts in the middle of the IPO roadshow are very unusual and material information for investors,a said attorney Jonathan Levine of Girard Gibbs. aThe reports that the lead underwriters shared this critical information with only a handful of their biggest clients are very troubling.a

Girard Gibbs is investigating whether Facebook, its officers and directors or its underwriters have violated the federal securities laws by failing to disclose material information to investors. If you invested in Facebook common stock and would like to learn more about this investigation, or have questions concerning your legal rights, contact Girard Gibbs at (866) 981-4800 or visit our website: [ Girard Gibbs Facebook Legal Investigation ].

[ Girard Gibbs LLP ] is one of the nationas leading firms representing investors, employees, consumers and small businesses in cases involving consumer protection, personal injury, securities, antitrust, and employment laws. The firmas senior partners, Daniel Girard and Eric Gibbs, have been selected for inclusion inThe Best Lawyers in America 2012andNorthern California Super Lawyers, and have earned AV-Preeminent ratings fromMartindale-Hubbell, recognizing them in the highest class of attorneys for professional ethics and legal skills.