Lead Plaintiffs Named in Two Facebook IPO Suits

(December 6) U.S. District Judge Robert Sweet in Manhattan has named lead plaintiffs in two separate suits resulting from the Facebook IPO in May.

One suit against NASDAQ contends that investors lost money due to the exchange’s computer malfunctions on offering day, preventing them from liquidating their positions on the stock’s immediate and dramatic correction. The other suit, a probable class-action suit brought by 31 large institutional investors, accuses Facebook of misrepresenting its true financial condition. With an IPO price set by underwriter Morgan Stanley at $38, the stock notoriously lost half its value within three months, and now trades south of $30 per share.

(Reuters at www.reuters.com)