Lawsuits and regulatory investigations turn IPO into a black eye for Facebook, underwriters and Nasdaq

Facebook, its underwriters and the Nasdaq exchange continue to face scrutiny over the company’s $16 billion initial public offering, as a number of investors have filed lawsuits and regulators have called for investigations.

Facebook’s stock closed at $32 today, up more than three percent since yesterday but still down from its $38 IPO price. Here we’ll recap the two main issues causing this onslaught of controversy and discuss what has happened so far as a result.

First

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