NEW YORK — A group of shareholders has filed a lawsuit against Facebook, its executives and Morgan Stanley, the lead underwriter in the company's IPO last Friday.
The lawsuit comes as Facebook Inc. stock climbs Wednesday after a two-day decline. The stock is up $1.03, or 3.3 percent, to $32.03. That’s still nearly 16 percent below the initial public offering price of $38.
The lawsuit, filed in U.S. 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 public 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.
