Facebook, along with Morgan Stanley,Goldman Sachs, Bank of America Corp, Barclays as well as other underwriters were sued on claims of misleading information.
The suit claimed that the group sought to conceal information on Facebook’s weakened growth forecasts prior to it public offering. The information that the plaintiffs, who are shareholders, claimed was withheld was connected to a report that came out but not distributed, over concerns of reduced revenue forecasts because of the increased use of mobile devices accessing the Facebook app that in turn would reduce revenue because of lessened ad exposure.
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The suit was filed in a Manhatten court according to one of the plaintiff’s lawyers. It is similar to a lawsuit filed in a California case yesterday. Shareholders have said that researchers lowered the business forecasts for Facebook, but only disclosed that information to preferred clients rather than to go public with it.
In recent days, the stock has fallen 18.4%, but is making up some of that lost ground today. Facebook stock is trading at 32.10 this morning, up +1.05 from opening.