Several shareholders who bought Facebook stock in the IPO have filed lawsuits against Facebook, its executives and Morgan Stanley, the IPO’s lead underwriter
One suit, filed in U.S. District Court in New York, claims Facebook’s IPO documents contained untrue statements and omitted important facts, such as a “severe reduction in revenue growth” that Facebook was experiencing at the time of the offering.
And, Business Week reports that Facebook is exploring the option of moving its stocks from the Nasdaq Stock Market to the New York Stock Exchange (NYSE).
Meanwhile, Facebook has settled a class-action lawsuit regarding its “Sponsored Stories” advertising program. This lawsuit was against the action of Facebook appropriating the names, photographs and identities of users to advertise products without their permission.
