Facebook revealed more than 8 percent of its 955 million monthly active users may be duplicate or false accounts amid the news that their stock reached some new lows.
It’s been a month since Facebook’s IPO fell flat and in that time, the market for initial public offerings has collapsed.
New documents show that federal regulators wanted to know more about Facebook’s mobile users and the company’s relationship with the online game company Zynga in the months leading to Facebook’s initial public offering of stock.
Facebook is seeking to consolidate the more than 40 lawsuits it faces following its rocky initial public offering of stock last month.
The stock fell $1.03, or 3.8 percent, to close Tuesday at $25.87. It’s 32 percent below its initial public offering price of $38. It’s the stock’s lowest closing price to date. Earlier Tuesday, it went as low as $25.75.
Morgan Stanley, the lead investment bank in Facebook’s troubled initial public offering, will compensate investors who overpaid when they bought Facebook’s stock in Friday’s IPO, according to a source familiar with the matter.
A group of shareholders have filed a lawsuit against Facebook, its executives and Morgan Stanley, the lead underwriter of the social networking firm’s initial public offering last week.
Facebook is in talks with the New York Stock Exchange to move its stock from the Nasdaq Stock Market after a botched initial public offering on Friday, according to a person familiar with the matter.
Regulators are examining whether Morgan Stanley, the investment bank that shepherded Facebook through its highly publicized stock offering last week, selectively informed clients of an analyst’s negative report about the company before the stock started trading.
After the social network’s stock fizzled on Friday in its long-awaited debut, its stock fell 11 percent on Monday, even as the rest of the stock market rallied.