Facebook stock climbs, but company faces lawsuits

Facebook on the fourth day of trading as a public company and a shareholder in the company's stock price is a social network botched initial public offering to the increase in lawsuits.

Facebook Inc. 's stock closed on Wednesday at $ 32 $ 1, or 3.2 percent, higher. Profits for shareholders, but only a short reprieve. Rocky opening day of trading Friday, the stock will decline in two days. The stock is still, in their $ 38 share price down nearly 16 percent of the cost.

A half-hour delay in the start up of the stock of public trading, Nasdaq Stock Market on the glitches caused by the spot on Friday morning. It is further marred the start of this week, investors in the bank's business with the possibility that some clients and not others, accusing them of important information about the share split.

The shareholders who purchased shares on the stock, the executives and Morgan Stanley, have filed lawsuits against the share of the lead underwriter. The big question is whether the underwriter's analysts for investment banks in the second quarter and full year forecasts cut just before the IPO, and that it is only a handful of clients.

The suit, filed in U.S. District Court in New York, on its share of false statements and omitted important documents, such as a "hard data as r,

Another case, of California, San Mateo County Superior Court filed in the case, and underwriters for Facebook, and claimed that he misled investors on its share documents. Both suits investors who lost money on behalf of Facebook stock purchases and seek class action status.

"No one is perfect, as far as saying, What are the financial results," said Anthony Michael Sabino, John Peter J. Tobin College of Business and University Professor. Bottom line, whether he is up to the underwriter's financial status information about the elements that were not publicly disclosed.

"At this point, it is still too early to tell," he said. "We do not know, but this may turn out to be a problem."

What is the beginning of March, on the underwriting firms in meetings with analysts. A share of the current and analysts gathered in the company's business so that they can understand the financial analysis is designed to help.

May 9, on the day of the roadshow pre-shared - with three potential investors, the company said in a revised document that the share of mobile users has been filed with the rapidly growing revenue. According to a person familiar with the matter, then there's another meeting with analysts and told them that the registration of new information, depending on analysts' forecasts in April to the lower end of the range that the company will be. The person spoke on condition of anonymity because they are not authorized to publicly discuss this issue.

Add events from the day, on the New York Stock Exchange to the Nasdaq Stock Market after the botched delivery of the stock to move, according to a person familiar with the matter.

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