NEW YORK-- Facebook s stock is climbing higher, a reprieve for shareholders after the stock s rocky inaugural trading day Friday was followed by a two-day decline.
Facebook Inc. s stock is up $1.03, or 3.3 percent, to $32.03. That s still nearly 16 percent below the initial public offering price of $38. Meanwhile, a group of shareholders have filed a lawsuit against Facebook, its executives and Morgan Stanley, the IPO s lead underwriter. The suit, filed in U.S. District Court in New York, claims the company s IPO documents contained untrue statements and omitted important facts, such as a severe reduction in revenue growth that Facebook was experiencing at the time of the offering. The suit s three plaintiffs, who bought Facebook stock on its first day of trading May 18, claim they were damaged in the process.
In a statement, Facebook said the lawsuit is without merit. Morgan Stanley declined to comment.