Facebook Inc. IPO Securities and Derivative Litigation

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Defense counsel retained Cornerstone Research to support multiple experts through class certification and merits stages.

Retained by Kirkland & Ellis

A few days after Facebook’s initial public offering in May 2012, plaintiffs filed a Section 11 class action. They alleged that Facebook’s offering documents contained misstatements and omissions relating to the effect of increased mobile usage on advertising revenue.

Cornerstone Research worked with defense counsel through the class certification and merits stages of the case for more than five years. Over that time, we supported multiple experts who submitted a total of 10 reports.

  • Disclosures: Brian Cartwright, former general counsel of the Securities and Exchange Commission
  • Loss causation and damagesPaul Gompers of Harvard University
  • Market microstructureMaureen O’Hara of Cornell University
  • UnderwritingDavid Stowell of Northwestern University
  • Social media advertising industry expert

The case settled before any ruling on the plaintiffs’ allegation of insufficient disclosures.


For additional information on this case, contact Stewart Mayhew.

Case Experts

Maureen O’Hara

Robert W. Purcell Professor of Finance,
Professor of Economics,
SC Johnson College of Business,
Cornell University

David Stowell

Clinical Professor of Finance,
Kellogg School of Management,
Northwestern University

Paul A. Gompers

Eugene Holman Professor of Business Administration,
Harvard Business School,
Harvard University