Investors want to sue Facebook

Several investor groups are seeking to sue the social network Facebook. The social network and the banks that arranged the Facebook IPO are accused of possessing more reliable information and making more informed decisions regarding the purchase of the social network's shares.

A few days ago, it was revealed that a report containing insider information was published shortly before Facebook's IPO. This report stated that Facebook's prospects were not as rosy as previously thought. Furthermore, the report's authors lowered their financial performance forecasts for the social network.

This led to major investors changing their minds about buying shares of the social network, either refusing to buy or buying less than planned.

Let's remember that Facebook sold more than 421 million shares at $38 in its IPO, but the company's shares later began to lose value, falling to $31.