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.
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Investors Sue Facebook, Zuckerberg
COVERUP
Accused of hiding bad growth forecasts ahead of IPO.
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