Shares of Facebook continued their downward spiral for the fourth consecutive day falling over 3% today amid fresh concerns over the company's financial prospects.
In the first 30 minutes of trading, Facebook stock declined by 3.22% from the previous close to $32 apiece.
According to media reports, Facebook and underwriters including Morgan Stanley, Goldman Sachs Group Inc and JPMorgan Chase & Co were sued by some shareholders, who claimed the defendants hid the social networking leader's weakened growth forecasts ahead of its $16 billion initial public offering (IPO).
The Secutities and Exchange Commission and regulatory body FINRA both said they would look into the matter, as per the media reports.
The scrip of the company has lost over 20% since it got listed on the Nasdaq exchange on Friday.
After closing only a shade above the offer price of $38 on Friday and the stock closed with a loss of 11 per cent plunge on Momday. On Tuesday, shares of Facebook dropped 9 per cent.
At the offer price of $38 apiece, the social network's share sale was over-subscribed and the firm was valued at $104 billion. However, Facebook's current market value stands at around $68 billion.
