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Facebook IPO: Another day, another lawsuit
After two straight days of getting hammered on the stock market, shares of Facebook are on the rise today, but that doesn’t mean the social media giant can breathe easy as the fallout continues from its controversial IPO.
Wednesday, a group of investors launched a class-action suit against Facebook and several of the underwriters who led the IPO. The suit, filed in U.S. federal court in Manhattan, claims investors have lost more than $2.5 billion since the IPO last week.
As of 1 p.m., Facebook shares were trading on the NASDAQ exchange at $31.85, a rise of 85 cents on the day. They’d earlier risen as high as $32.50.
“The true facts at the time of the IPO were that Facebook was then experiencing a severe and pronounced reduction in revenue growth,” the plaintiffs said in their lawsuit. ................(more)
The complete piece is at: http://www.thestar.com/business/article/1182879--facebook-ipo-another-day-another-lawsuit?bn=1
