In May this year Facebook went public with its much awaited Initial Public Offering. It was the biggest IPO in internet history, with a peak market capitalization of over $ 104 billion.
Facebook's long-anticipated initial public offering was ultimately plagued by a series of problems. Nasdaq, suffered a computer malfunction during the first hours of the IPO, leading to tens of millions of dollars in trades being wrongly placed. There were also claims of an initial price being too high. The stock lost over a quarter of its value in less than a month and went on to less than half its IPO value in three months.
A group of Facebook shareholders filed a lawsuit, alleging that important information about Facebook's financial outlook was "selectively disclosed" to big banks ahead of the IPO.
A widow has now sued Morgan Stanley for $1.9m as she blames bank for losing her life savings in Facebook IPO.