Facebook, Zuckerberg, Banks sued over Facebook’s Weekend Growth Forecasts

Posted on May 23 2012 - 1:41pm by Editorial Staff

We celebrated social giant’s IPO last Friday with lot of excitement, but since from morning today Facebook, CEO Zuckerberg, its underwriter, NASDAQ and other related to it are under fire. The latest to add is shareholders suing the company, Mark Zuckerberg, and several banks led by Morgan Stanley over the social giant leader’s weakened growth forecasts ahead of $16 billion IPO. The lawsuit was filed in the U.S. District Court in Manhattan, according to a lawyer for the plaintiff.

Write Reuters’ Dan Levine and Jonathan Stempel:

The defendants were accused of concealing from investors during the IPO marketing process “a severe and pronounced reduction” in Facebook revenue growth forecasts, resulting from increased use of its app or website through mobile devices.

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