At least three shareholder lawsuits have so far been brought against Facebook and the three leading underwriters of the I.P.O., Morgan Stanley, JPMorgan Chase and Goldman Sachs, alleging that Facebook failed to disclose material information about its growth prospects.
The Securities and Exchange Commission and the Financial Industry Regulatory Authority, or Finra, are also looking at the company and its lead underwriter, Morgan Stanley, along with the Nasdaq market over how it handled the initial flow of orders on the first day of trading. The question now is how all of these suits and investigations are likely to play out.
via The Facebook I.P.O.’s Potential Legal Exposure — DealBook
