The stock price of Facebook Inc. has jumped $1.41 (5%) to close at $29.60 on Thursday. This jump is good news for the company after three consecutive days of decline. Unfortunately Facebook’s stock price is still down 22% since their IPO from two weeks ago. Facebook Inc. went public on May 18 with an opening price of $38. Facebook’s trades on that day suffered from market glitches.
Lead investment bank Morgan Stanley and Facebook are now the subject of two shareholder lawsuits over the drop in the stock price. The lawsuits allege that analysts at the large investment banks cut financial forecasts for Facebook right before the IPO and only told a few clients. Facebook said that the lawsuits are “without merit.”