US SEC drops Facebook IPO probe

Regulator ends investigation into flotation malfeasance, without ‘enforcement action’

Tags: Facebook IncorporationUSA
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US SEC drops Facebook IPO probe (Getty Images)
By  Stephen McBride Published  July 27, 2014

The US Securities and Exchange Commission's investigation into Facebook Inc's troubled IPO has been dropped without "enforcement action", Reuters reported.

Facebook revealed in its quarterly filing that the regulator had notified the social media giant in May of its intention to end its probe.

Facebook still faces a shareholder lawsuit over its May 18, 2012 flotation, which was marred by technical difficulties that affected stock transaction processing. Investors also allege wrongdoing on the part of Facebook in not disclosing internal projections of its advertising business.

Following opening day, the stock lost nearly half of its offer price of $38 within three months, but has since climbed to above $75.

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