Gibbs Law Group Investigates Potential Securities Law Violations
Shares of BuzzFeed Inc. dropped 6.8% on March 23, 2022, after the company released its first earnings report since going public that announced staff cuts and an expected decline in revenue. Previously, 77 former and current employees accused the company of botching its debut and failing to properly instruct its workers on how to trade their shares immediately after the company went public in December of 2021. Gibbs Law Group is investigating a potential BuzzFeed Securities Class Action Lawsuit on behalf of investors who lost money in BuzzFeed (NASDAQ: BZFD).
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
On March 22, 2022, in BuzzFeed’s first earnings report issued since going public since December, the company said it expected revenue to decline in the first quarter of 2022 and it further announced it was reducing its workforce by 1.7%. At the same time, BuzzFeed News’s Editor in Chief announced he was stepping down.
The previous week on March 15, 2022, the New York Times reports 77 former and current BuzzFeed employees have filed claims with the American Arbitration Association seeking compensatory damages in excess of $8.7 million. According to the article, in the days following BuzzFeed’s December IPO through a special purpose acquisition company (or SPAC) called 890 Fifth Avenue Partners, the company’s stock plummeted. Some employees state that they were unable to sell their shares until the price had dropped nearly 60%, while others state that they are still unable to sell their shares to this day. Following this news, BuzzFeed stock price plunged 6.8% on March 23, 2022, causing significant harm to investors.
What Should BuzzFeed Investors Do?
If you invested in BuzzFeed, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether BuzzFeed has violated federal securities laws by providing false or misleading statements to investors.
About Gibbs Law Group
Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”
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