Facebook's stock continues to perform more embarrassingly than your grandmother on Facebook. Now Facebook's disastrous IPO has descended, predictably, into a morass of lawsuits as investors scramble to recover their losses. This is so much more fun than marveling at how rich Mark Zuckerberg is!
Facebook shareholders filed a class action lawsuit against Facebook and banks that underwrote the deal, including Morgan Stanley and Goldman Sachs. They're pissed over reports that Facebook hid worrying financial numbers from the public before the IPO, while working with banks to tip off preferred investors. From Reuters:
Shareholders said research analysts at several underwriters had lowered their business forecasts for Facebook during the IPO process, but that these changes were "selectively disclosed by defendants to certain preferred investors" rather than to the public generally.
"The value of Facebook common stock has declined substantially and plaintiffs and the class have sustained damages as a result," the complaint said.
Mark Zuckerberg is named in the lawsuit, which brings the total number of times Zuckerberg has been sued to ~five million.
Meanwhile, an investor in Maryland hit Nasdaq with his own class action lawsuit because a computer glitch screwed up some orders for Facebook stock on Friday. Hey, investor, if a computer cancelled your order you should consider yourself lucky. Go buy a jet ski with the money you didn't lose and forget about it.
[Image via Getty]