FFN Stock opened at $10 a share a little over 6 months ago at their IPO. It ended the day today at $1.47 a share.
Block & Leviton LLP Files A Securities Class Action Lawsuit Against FriendFinder Network, Inc., Its Officers, Directors And Certain Underwriters
Quote:
The lawsuit alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 on behalf of investors who purchased or otherwise acquired FFN’s common stock pursuant to the May 11, 2011 public offering of its common stock (the “May Offering”). The complaint asserts that FFN, its officers, directors and Underwriters made false and misleading statements and omissions in the Registration Statement and Prospectus dated May 10, 2011 and May 11, 2011, respectively (the “May Offering Documents”).
According to the May Offering Documents, after the offering there would be approximately 26.7 million common shares outstanding. Of these shares, at least 20.9 million were subject to a 180 day lock-up period, during which the shares could not be traded (the “Restricted Shares”). These statements are alleged to have been false and misleading when made because: (i) a material number of the Restricted Shares were publicly traded during the lock-up period; and (ii) the Company was suffering from grossly deficient internal controls and therefore was unable to abide by the terms of the May Offering Documents.
FFN’s stock price has dropped precipitously since the May Offering, falling over 20% in the first day of trading alone. At the time the lock-up period expired, the stock had fallen to less than $2.00 per share.
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http://www.dailymarkets.com/stock/20...-underwriters/