Facebook IPO Investigation

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(CNN) - Regulators are investigating a report that Morgan Stanley shared a negative assessment of Facebook with major clients ahead of the initial public offering last week.  Morgan Stanley is the lead underwriter for the social network company.

The company is accused of reducing revenue projections for Facebook just before the IPO and shared the information with institutional investors.

Facebook shares have dropped 18 percent since the start of public trading.  The initial offering price was 38 dollars a share.