Former Alabama AG sues Facebook - ABC 33/40 - Birmingham News, Weather, Sports

Former Alabama AG sues Facebook

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    Former Alabama Attorney General Troy King's law firm is going after Facebook.  The firm King & Nix and Morgan & Morgan is filing a class action suit on behalf of people who bought Facebook stock.

    The lawsuit claims a registration statement for the company's initial public offering was misleading.  It also says Facebook did not inform potential investors that it anticipated a drop in revenue.

    That drop is because of more people accessing the social networking service through mobile devices.  In that type of access, users don't see as many ads as they would see in a web browser.