A look back at Facebook's rough IPO

This story has been updated on May 23, 2012.

(CBS/AP) CEO Mark Zuckerberg got married last week, but Facebook's initial public offering on Wall Street has been anything but a honeymoon.

Allegations have arisen that before it was even launched, an analyst at Morgan Stanley selectively gave clients negative information about Facebook's IPO. Nasdaq was plagued with technical issues on the day it was launched. And in the three days since, the stock that was supposed to be priced so it would go up when it hit the market at $38 has now gone down 18 percent. The company's value has plummeted from $104 billion to less than $67 billion -- a loss to investors of more than $37 billion so far.

One veteran of the IPO market called this a travesty. Facebook, he told CBS News, has become a laughing stock.

Below is a wrapup of the developments to this point:

Some banks kept quiet on dimming Facebook outlook
Facebook shares continue slide
Facebook stock: Morgan Stanley under fire

• Massachusetts' top securities regulator has subpoenaed Morgan Stanley related to allegations that Morgan Stanley selectively divulged to some clients that its analyst had cut his revenue estimate for Facebook. Morgan Stanley was the lead underwriter for Facebook's IPO. Banks underwriting a stock offering generally are barred from issuing recommendations until 40 days after it starts trading.

  The analyst's revision followed an amended filing by Facebook in which the company said a shift by many Facebook users toward mobile devices might limit its revenue growth. Morgan Stanley in a statement Tuesday night said it acted in compliance with all applicable regulations.

  In Washington, SEC chairman Mary Shapiro said, "There are issues that we need to look at specifically with respect to Facebook."

• A senior Nasdaq Stock Market official "told customers Tuesday afternoon that it would have pulled the plug on Facebook Inc.'s initial public offering had it known the full extent of the technical problems that plagued its systems," the Wall Street Journal reports.

  Eric Noll, Nasdaq's head of transaction services, said the exchange "by no means would have gone forward" with the much-watched Facebook debut if it had known problems would disrupt a "normal trading day." Problems delayed the trading of Facebook shares by 30 minutes and left many investors in the dark about their orders for more than two hours, although in all 570 million shares were processed that day.

  Phillip Goldberg, a Maryland resident, is seeking class-action status on behalf of all investors who lost money because Nasdaq delayed or otherwise mishandled their buy, sell or cancellation orders for Facebook stock on May 18, the day the social networking giant went public, Reuters reports. Goldberg filed his lawsuit on Tuesday in the U.S. District Court in Manhattan.

• California's budget could take a hit if Facebook's stock price keeps sliding. Gov. Jerry Brown estimated the state will generate between $1.4 billion and $1.9 billion over the next 13 months from taxes related to sales of Facebook stock. The estimates were based on prices at $35 per share.

• Facebook itself is close to settling its own lawsuit over advertisements it calls "sponsored stories." Launched in early 2011, the service let brands pay to retransmit users' activities to their friends' pages. For example, if someone clicks the "like" button for a brand, this activity might show up as a "sponsored story" on their friends' pages. Lawyers for Facebook and the plaintiffs said in a San Jose, Calif. court filing Monday that they have reached a "settlement in principle."

• A group of shareholders have filed a lawsuit against Facebook, its executives and Morgan Stanley. The suit, filed in U.S. District Court in New York, claims the company's IPO documents contained untrue statements and omitted important facts, such as a "severe reduction in revenue growth" that Facebook was experiencing at the time of the offering. The suit's three plaintiffs, who bought Facebook stock on its first day of trading May 18, claim they were damaged in the process.

  In a statement, Facebook said the lawsuit is without merit. Morgan Stanley declined to comment.