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Facebook to be sued over shares

Facebook and banks including Morgan Stanley are being sued by shareholders who claim the defendants hid Facebook's weakened growth forecasts when shares went on sale for the first time last Friday.

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Some investors 25% down as Facebook shares tumble

All smiles last Friday as Facebook shares went on sale for the first time. Credit: Facebook

Facebook stock sank today in the first day of trading without the full support of the company's underwriters, leaving some investors down nearly 25% from where they were on Friday afternoon.

Shares fell $4.64 to $33.67 in the first minutes of trading. That represented a decline of more than 12% from Friday's close and about 24.4% from the intra-day high of $45 a share.

"There are real concerns about growth and advertisers' frequent lack of certainty how best to use Facebook, along with rising costs and ongoing acquisition risk," said Brian Wieser at Pivotal Research Group.

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