Investors file lawsuit against Facebook CEO, Morgan Stanley


Three investors filed a class-action on Wednesday in the U.S. District Court in New York against Facebook Chief Executive Mark Zuckerberg and Morgan Stanley, the lead underwriter for Facebook’s IPO. An investor also filed a similar lawsuit in California on Tuesday.

The investors allege that Facebook concealed information from most investors that the company’s revenue growth forecast would be reduced in 2012.

“There was material information that wasn’t shared, or properly disclosed in the registration statement and prospectus prepared, in connection with the IPO,” said Sam Rudman, an attorney representing the shareholders.

The Securities and Exchange Commission and the Financial Industry Regulatory Authority are now conducting investigations of Facebook’s IPO.

Facebooks shares jumped over 3% and closed at $32 per share Wednesday.

(Copyright 2012 KTSF.  All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

Share This

Leave a Reply

Connect with Facebook