As if having your stock tank wasn’t bad enough, Facebook and its banks are now facing lawsuits from disgruntled shareholders. The suit claims that Facebook hid weakened revenue growth forecasts from the general public while alerting a select group of investors ahead of its IPO. Andrew Noyes, a Facebook spokesman, said: “We believe the lawsuit is without merit and will defend ourselves vigorously.” Morgan Stanley had no comment about the lawsuit, but previously said that Facebook IPO procedures complied with all applicable regulations and were the same as in any initial offering. No matter how you look at it, this is not great news for Facebook or any other tech company looking to go public in the near future. NASDAQ already apologized for a series of technical glitches that had a negative impact on Facebook’s IPO, this lawsuit – one of many that are being filed – just adds insult to injury. What’s next for Facebook? Redesigning profile pages of course.
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