Investors Sue Facebook

    FILE - In this Oct. 10, 2011 file photo, a magnifying glass is posed over a monitor displaying a Facebook page in Munich. Taking a company public isn't as simple as collecting Facebook friends. Even if the company is Facebook. (AP Photo/dapd, Joerg Koch)

    Joerg Koch / AP Photo

    Facebook shareholders filed a lawsuit on Wednesday against Facebook, its chief executive Mark Zuckerberg, and several banks led by Morgan Stanley for hiding weakened growth forecasts for the social network ahead of its initial public offering. The suit alleges that the company and the banks tried conceal that there was a “severe and pronounced reduction” in Facebook’s revenue-growth forecasts just ahead of the social network going public. The suit comes just one day after regulators said they would be investigating the issues surrounding Facebook’s debut on the market.

    Read it at Reuters