Recriminations over Facebook’s initial public offering escalated yesterday as a group of investors filed a law suit against the social network group and the investment banks that backed last week’s flotation.
In a US federal district court, a group of investors alleged the company and its banking syndicate “selectively disclosed” revisions to Facebook’s earnings outlook to “certain preferred investors”.
“The [Facebook] registration statement and prospectus contained untrue statements of material facts,” the court filing claims.
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