Facebook's tailspin continues
June 5, 2012: 5:31 PM ET
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It was supposed to be the IPO of the year, but Facebook's (FB) performance as a publicly traded company has been, in a word, disappointing.
Shares of the social network continued to fall Tuesday, dropping another 3.6% to end at $25.87. The stock is down 32% from its May 18 offering price of $38.
There were issues with Facebook's IPO from the start, when technical problems on the Nasdaq delayed its launch. Numerous investors have complained to CNNMoney that their orders were processed incorrectly or delayed.
In addition, Facebook and its underwriters have been accused of granting preferential treatment to institutional investors by sharing negative information with them about the IPO, which they allegedly withheld from other investors.
This is the basis of a class action suit from investors against Facebook, CEO Mark Zuckerberg, and the underwriters, including Morgan Stanley (MS), JPMorgan Chase (JPM), Goldman Sachs (GS), Barclays Capital and Merrill Lynch, a unit of Bank of America (BAC).
