The shareholder lawsuit against Facebook and its banking partners argues they made a "severe and pronounced reduction" to the company's revenue projects days before the initial offering but hid it from the public.
What did the Morgan Stanley know about Facebook, when did it know, and who did it tell? Shareholders prepare to sue the bank and Facebook over how the public offering of stock was handled.
The stock tanked 11 percent yesterday, and a technology glitch marred its first day of trading Friday. Some look at the disappointing debut and wonder if something's amiss generally in the tech sector.
The brand new stock in Facebook is down 11 percent right now to $33.11. If day one of trading was seen as a disappointment, day two is so far not winning many new friends at the social networking company.
Facebook's first investors didn't lose their shirts. The company's stock is trading right where it started on Friday: 38 bucks a share. But the initial public offering didn't go exactly as planned. The start was delayed; computer systems locked up; and NASDAQ executives are promising to fix the problems.
After opening later than expected, the first few hours of the Facebook IPO are suggesting that the company might have misjudged the value of its shares.
