Shareholders sue Facebook
New shareholders of Facebook Inc. filed a lawsuit Wednesday against the social media giant and the underwriters of its initial public offering, Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co.
The lawsuit alleges that Facebook, its founder, Mark Zuckerberg, and the underwriters tried to conceal changes in revenue forecasts from mobile advertising on Facebook.
The company made history last Friday with the largest initial public offering ever, but has since faced a backlash after stock prices dropped up to 19 percent at one point.
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