Authors: Jeanette Torres
(NEW YORK) -- Since its debut on NASDAQ last Friday, Facebook's stock has been sliding, dropping from an initial public offering price of $38 to just under $32 by Tuesday's close.
Co-founder Mark Zuckerberg has already lost several billion dollars, considering he owns more than 500 million shares in the company.
Most felt that Facebook was widely overvalued at $38 share. And now, a potential scandal is brewing as the Financial Industry Regulatory Authority might investigate reports that as bankers were building up the IPO to the public, they were privately lowering revenue forecasts and perhaps sharing their predictions with integral investors.
Secretary of the Commonwealth William Gavin, the top securities regulator in Massachusetts, has sent out a subpoena to Morgan Stanley. Gavin wants to know if the firm secretly revealed to clients that its analysts had cut its revenue estimate for Facebook.
Meanwhile, one investor is considering a class action lawsuit against the NASDAQ for computer glitches last Friday that prevented many from purchasing Facebook stock.
Copyright 2012 ABC News Radio