Updated: The Facebook IPO Fiasco

From the first rumours about Facebook’s IPO (initial public offering), the world has been keeping a close eye on the company’s activity. During the week before its launch Facebook was basically all we could read about on Mashable and online in general.

Facebook‘s first day of trading after its IPO looked more like a disaster than a success. With the stock valuation going up the week before the IPO went public, the initial investors must be (a little bit) gutted to see share price fall dramatically. It looks like Mark Zuckerberg’s smile is slowly fading away as Facebook Share prices drop. To see the changes in real-time click here. Zuck also got married on Saturday to long-term girlfriend Priscilla Chan (congratulations!) .

As every day brings in new stories about this controversial IPO, yesterday I read an article about a potential lawsuit over misinformation on Facebook’s dropping revenue growth.

Now Facebook stock is in freefall and Zuckerberg and Facebook’s IPO underwriters have been sued for allegedly sharing information about the company’s declining revenue.

The Huffington Post wrote: “The defendants, who also include Facebook Chief Executive Officer Mark Zuckerberg, were accused of concealing from investors during the IPO marketing process “a severe and pronounced reduction” in revenue growth forecasts, resulting from increased use of its app or website through mobile devices.”

If these allegations are true, building trust in the market will prove extremely difficult for Facebook.

What’s next? What will it take for Facebook to build up trust in its brand?