Shares of Facebook plunged to all-time lows after early investors and insiders were allowed to sell their shares Thursday, dimming California’s hope for a capital gains windfall that would help balance the state budget.
Performant Financial Corp.’s initial public offering of 9 million shares priced at $9 per share, below an expected range of $12 to $14.
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.