Facebook, Zuckerberg, banks sued over IPO
May 23 (Reuters) - Facebook Inc (FB.O), Chief Executive Mark Zuckerberg, and several banks led by Morgan Stanley (MS.N) were sued by shareholders, who claimed the defendants hid the social networking leader's weakened growth forecasts ahead of its $16 billion initial public offering.
The defendants were accused of concealing from investors during the IPO marketing process "a severe and pronounced reduction" in Facebook revenue growth forecasts, resulting from increased use of its app or website through mobile devices.
The lawsuit was filed in the U.S. District Court in Manhattan, according to a lawyer for the plaintiff.
(Reporting By Dan Levine in San Francisco and Jonathan Stempel in New York; Editing by Gerald E. McCormick)
((email@example.com)(646)(223-6317)(Reuters Messaging: firstname.lastname@example.org)) Keywords: FACEBOOK/LAWSUIT
(C) Reuters 2012. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing, or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.