Facebook Sued Over Earnings Forecast For Bumpy IPO

Law360, New York (May 22, 2012, 7:03 PM EDT) -- Facebook Inc. and underwriters including Morgan Stanley were hit with a proposed class action Tuesday alleging underwriters tipped big clients that they had cut earnings forecasts ahead of the social network's hotly-anticipated initial public offering, as the controversy surrounding the IPO continues to grow.

The suit came the same day that the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority said they are also looking into the allegations, as well as examining a technical snafu that disrupted opening trading on Nasdaq on Friday....
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