Facebook may move to New York Stock Exchange from NASDAQ amid IPO fiasco
LOS ANGELES (KABC) -- Facebook is now in talks with the New York Stock Exchange to move its stock from NASDAQ, ABC News has learned.
The much-anticipated initial public offering was delayed by a half hour on Friday because of glitches, and there are now suspicions of illegal activity.
U.S. regulators want to know if big investors at Morgan Stanley were tipped off about a negative report on Facebook's finances. That's information regular investors didn't get.
A Senate panel is reviewing the allegations, the U.S. Securities and Exchange Commission is investigating and the state of Masschusetts has subpoenaed the bank.
"Did all prospective investors get all the same information at the same time? Or were there certain preferred investors given special information which gave them an advantage or an edge here?"questioned Massachusetts' Secretary of State William Galvin.
The company's stock is down almost 20 percent just days after Facebook hit the market, and now shareholders are suing, alleging the online social network hid their slowing revenue projections.
Also, regulators may be focusing on another matter: Did Facebok decide to sell 25 percent more stock than they originally told the public they would? According to the Wall Street Journal, the company's CFO apparently added that additional stock expecting more people would want to buy shares of Facebook.
ABC News contributed to this report.
- London attack victim was a serving soldier
- Glendora yard dug up in 35-year-old cold case
- Oklahoma tornado victims' names released
- Bear cub breaks into a kitchen in Duarte
- Local police officer accused of child molest 28 min ago
- OC sheriff's reserve sergeant found beaten
- Model murder trial: Case in hands of jury
- UC hospital workers' strike ends after 2 days 42 min ago
- abcnews: New Susan Powell video released
- Teen birth rate: Nearly all states see drop
- Arias jury stuck but must keep deliberating
- 'Hangover' films changed lives of the stars
- OTRC: Critics' Choice Television Awards nominees
- Tornado relief drives: More than $211K raised