The U.S. Senate Banking Committee is reviewing "issues raised in the news" regarding Facebook's botched initial public offering, a Democratic Senate Banking aide told Reuters.
The review is not considered a formal investigation at this point, but entails briefings among the committee staff and regulators, Facebook and other stakeholders.
The announcement by the committee comes on the heels of reports by Reuters that an analyst for lead underwriter Morgan Stanley cut his revenue forecasts for Facebook in the days before the offering. The IPO also suffered setbacks following a technology glitch on the Nasdaq exchange.
The aide did not provide details about what issues the committee planned to explore.
Facebook and Morgan Stanley are being sued by shareholders who claim weakened growth forecasts were hidden ahead of shares being sold.
If Facebook can get around privacy issues to use advertising better and capitalise on markets like China and Russia, prices should recover.
After all the hype about the most expensive flotation of a company ever, Facebook shares are well down on what they were when launched.