(Reuters) Facebook Inc and banks including Morgan Stanley were sued by the social networking leader's shareholders, who claimed the defendants hid Facebook's weakened growth forecasts ahead of its $16 billion initial public offering.
The defendants, who also include Facebook Chief Executive Officer Mark Zuckerberg, were accused of concealing from investors during the IPO marketing process "a severe and pronounced reduction" in revenue growth forecasts, resulting from increased use of its app or website through mobile devices. Facebook went public last week. District Court in Manhattan on Wednesday, according to a law cheap nfl jerseys firm for the plaintiffs. A day earlier, a similar lawsuit by a different investor was filed in a California state court, according to a law firm involved in that case.
"The value of Facebook common stock has declined substantially and plaintiffs and the class have sustained damages as a result," the complaint said.
Representatives of Facebook and Morgan Stanley did not immediately respond to requests for comment.
Facebook shares fell 18.4 percent from their $38 IPO price in the first three days of trading, reducing the value of stock sold in the IPO cheap jerseys from china by more than $2.9 billion.
(Reporting by Dan Levine in San Francisco and Jonathan Stempel in New York; Editing by Gerald E. Click for Restrictions.
In South Korea Visit, Obama Visits Border and Warns North
PANMUNJOM, South Korea President Obama warned North Korea on Sunday that its threats and provocations would only deepen its international isolation and jeopardize the resumption of American food aid, and he called on the North to scrap its plans to launch a satellite next month.
Squinting through binoculars from an observation post at the demilitarized zone between North and South Korea, Mr. Obama got a firsthand look at North Korea. The North, with a new leader in place, briefly tantalized the United States weeks ago by raising the possibility of ending the standoff over its nuclear program, only to resume its usual defiance with the recent satellite announcement..