Investors sue Facebook

Investors and lawyers are suing Facebook and its underwriters after the company’s US$16-B initial public offering flopped. Facebook shares have plunged 18% over the first 3 trading sessions, prompting allegation that institutional investors had received privileged information that drove them to dump the shares at the expense of small investors. Bloomberg reported that a Massachusetts regulator has decided to subpoena to Morgan Stanley, one of Facebook’s underwriters. 

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