Facebook to be sued for 'misleading' investors

Morgan Stanley is accused of selectively informing clients of a negative report about Facebook before shares started trading. Photo: AP Photo/Mark Lennihan

Facebook founder Mark Zuckerberg lost a few more friends today.

Facebook and Morgan Stanley are being sued by shareholders who claim weakened growth forecasts were hidden ahead of shares being sold.

From America, Robert Moore reports.

The lawsuit, which also targeted underwriters JPMorgan Chase and Goldman Sachs among others, comes as Facebook and the banks that took it public face many questions about the IPO process, which culminated in a May 18th stock market debut plagued by technical glitches.

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