Readers like you keep news free for everyone.

More than 5,000 readers have already pitched in to keep free access to The Journal.

For the price of one cup of coffee each week you can help keep paywalls away.

Support us today
Not now
Advertisement

Shareholders file lawsuit over Facebook flotation

Meanwhile a US Senate committee is considering launching an inquiry into the social network’s recent flotation.

The pre-market price for Facebook shares shown in New York this morning.
The pre-market price for Facebook shares shown in New York this morning.
Image: AP Photo/Mark Lennihan

A US SENATE PANEL is preparing to launch an inquiry into the flotation of the social network Facebook last week.

The company’s shares floated at $38 on their first day of trading on Friday, but have dipped since trading opened on Monday and are currently priced at around $32 a share.

An aide to the Senate Banking Committee said today that it wants more information about the initial public offering and will seek meetings with representatives from Facebook and regulators.

Meanwhile, a group of shareholders is suing the company and Morgan Stanley, which was the lead underwriter for Facebook’s IPO. They claim that the IPO documents omitted key information about the company’s growth forecasts and contained false statements.

The AP reports that US regulators are looking into whether Morgan Stanley selectively informed clients of an analysts

Morgan Stanley has not commented on the lawsuit, but says it fully complied with rules concerning the IPO.

Making a difference

A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article.

Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

For the price of one cup of coffee each week you can make sure we can keep reliable, meaningful news open to everyone regardless of their ability to pay.

- Additional reporting by the AP

Read next:

COMMENTS (33)