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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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US Senate reviewing 'issues' over botched Facebook stock launch

Facebook's stock launch last Friday was delayed by technical issues with NASDAQ, the American stock exchange. Credit: Facebook

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.

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