Submitted by Fox First at Ten on June 14th
NEW YORK (AP) - A federal judge in Texas has rejected a legal challenge to Facebook and leading investment banks over the company's initial public offering of stock.
One disgruntled shareholder had sought to compel Facebook to answer questions, which could then form the basis of a formal lawsuit. The judge ruled this week that the shareholder had to do the research on his own first before getting the court involved.
Other cases have been filed against Facebook and its investment banks, claiming that analysts at those banks, including Morgan Stanley, cut their financial forecasts for Facebook just before the IPO and told only a handful of clients.
Facebook's stock is trading at $27.81 as of Thursday afternoon, up 2 percent for the day but down nearly 27 percent from the May IPO price.
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