Shareholders who recently bought the much hyped facebook IPO has sued the social media company as well as Morgan Stanley (MS), Goldman Sachs Group Inc. (GS) and JPMorgan Chase & Co. They were sued along with other underwriters by investors who claimed they were misled in the purchase of the social facebook stock.
Also sued were units of Bank of America Corp., Barclays Plc (BARC), and members of Facebook’s board.
The investors said the members of a proposed class action, or group lawsuit have lost more than $2.5 billion since the initial public offering last week, according to a complaint filed today in Manhattan federal court.
Facebook went public at $38 a share. While the stock rose 1.5 percent and raised $16 billion in the IPO, it plunged 19 percent over two days. Today, Facebook rose 3.5 percent, or $1.10, to $32.10 at 9:41 a.m. ?New York? time in Nasdaq trading.
“The true facts at the time of the IPO were that Facebook was then experiencing a severe and pronounced reduction in revenue growth,” the plaintiffs said in the complaint.
A Facebook investor sued Nasdaq OMX Group Inc. yesterday in the same court, saying the exchange “badly mishandled” trades in Facebook stock.
