A financial news stock ticker on Morgan Stanley headquarters carries a headline about Facebook, Wednesday, May 23, 2012 in New York. Regulators are examining whether Morgan Stanley, the investment bank that shepherded Facebook through its highly publicized stock offering last week, selectively informed clients of an analyst's negative report about the company before the stock started trading. (AP Photo/Mark Lennihan)
WASHINGTON—Facebook and its underwriters came under broad legal attack Wednesday as lawyers and investors filed lawsuits over Facebook’s flop controversy-marred initial public offering.
At least three law firms said they were filing actions against Facebook and its underwriters after the $16 billion IPO flopped amid accusations that the lead underwriters and the company itself hid material information from investors.