Facebook is facing a lawsuit from angry shareholders and multiple probes from regulators over the disappointing handling of its initial public offering last week.
In a suit filed in the U.S. District Court in Manhattan late Tuesday, a group of Facebook shareholders are suing the Menlo Park, Calif.-based company, claiming insiders were selectively given secret information about the company's true financial projections from underwriters, while retail investors and other investment houses were left in the dark.
"The revised figures were only passed along to some investors who were therefore able to make profits by selling their IPO shares Friday while shares were on the rise," New York law firm Levi & Korsinsky alleges in the suit.
http://www.cbc.ca/news/business/story/2012/05/23/facebook-ipo-stock.html