Facebook stock climbs after rocky start but still 16 per cent below initial public offering price
Wednesday 23 May 2012
Facebook's stock is climbing higher, a reprieve for shareholders after the stock's rocky inaugural trading day on Friday was followed by a two-day decline.
Facebook Inc.'s stock is up $1.03, or 3.3 per cent, to $32.03. That's still nearly 16 per cent below the initial public offering price of $38. Meanwhile, a group of shareholders have filed a lawsuit against Facebook, its executives and Morgan Stanley, the IPO's lead underwriter.
The suit, filed in US District Court in New York, claims the company's IPO documents contained untrue statements and omitted important facts, such as a "severe reduction in revenue growth" that Facebook was experiencing at the time of the offering. The suit's three plaintiffs claim they were damaged.
In a statement, Facebook said the lawsuit is without merit. Morgan Stanley declined to comment.
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