Facebook is underwater — its stock closed today 25 percent below its $38 IPO price on May 18. Angry investors are filing lawsuits and government agencies are digging in. Many are alleging that Facebook told underwriters — but not the public in its prospectus — that its revenue forecast was lower than expected.
Update: An investor files a third lawsuit Thursday in a federal court in New Year. Full complaint here.
Not everyone blames Facebook, though. Should investors do better homework? “When I was researching a story I found that (Facebook) modified its filing to better reflect its weak position on mobile. As an investor, either you listen or you don’t,” commented my colleague, columnist and IT pro Dino Londis.
I did a story on this at CNET’s Techrepublic. Read the full complaints below.
And here is the full complaint against Facebook filed in California.
California Complaint against Facebook (TECHREPUBLIC)