Facebook IPO Tainted By Insider Trading, Investor Suit Says

Law360, Wilmington (March 4, 2013, 4:55 PM EST) -- Facebook Inc.'s board, including Chairman Mark Zuckerberg, and the banks that underwrote the company's controversial initial public offering were hit with another shareholder derivative lawsuit Friday, this time in Delaware, alleging the $16 billion IPO was tainted by insider trading.

The social networking site’s board — along with underwriters Morgan Stanley & Co. LLC, Goldman Sachs & Co. and JP Morgan Securities LLC — upped the size and price of the IPO and sold millions of their own Facebook shares while withholding bleak revenue forecasts from...
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