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(Reuters) – Facebook Inc said the U.S. Securities and Exchange Commission dropped its probe into the social networking company over events surrounding its controversial initial public offering. In its quarterly report filed on Thursday, Facebook said the regulator in May notified us that it had terminated its inquiry and that no enforcement action had been recommended by the SEC. Facebook shares began trading on May 18, 2012, but soon fell below their $38 per share offering price and had lost more than half their value by the middle of August, angering investors. Investors also complained they were not told just prior to the IPO that analysts at Facebooks investment banks were cutting their forecasts after learning of the companys internal projections for advertising revenue. The end of the SEC probe does not affect shareholder litigation against Facebook, Chief Executive Mark Zuckerberg and many banks over the Menlo Park, California-based companys IPO.