Douglas Branson on the Pricing of the Facebook IPO
Professor Douglas Branson commented on the initial public offering (IPO) of stock by Facebook. In a June 3rd article, the Pittsburgh Post-Gazette discussed the fact that the price of the Facebook IPO has fallen to $28 from an offering price of $38. A lawsuit by shareholders seems likely. According to Professor Branson, “the defense to a shareholders’ suit might be that underwriting mistakes rather than disclosure violations were the legal cause of investors’ losses.”
See the Post-Gazette article here.