Skip to comments.Investors File Suit Against Facebook, Underwriters
Posted on 05/23/2012 7:49:43 AM PDT by Sub-Driver
Investors File Suit Against Facebook, Underwriters By DAVID BENOIT
Three Facebook Inc. investors filed a civil lawsuit Wednesday in Manhattan federal court, alleging the company and its underwriters failed to properly disclose changes to analysts' forecasts made at the underwriting banks.
The suit follows reports that analysts at Morgan Stanley and Goldman Sachs Group Inc. cut their revenue forecasts on Facebook amid the investor roadshow, a change that wasn't widely disseminated.
Late Tuesday, Massachusetts sent a subpoena to Morgan Stanley following the reports. Several other plaintiffs' lawyers have said they filed suits over the offering in other courts throughout the country, seeking class-action status.
Wednesday's investor suit, which also is seeking class-action status, alleges the changes made to Facebook's offering document, which said that mobile-user growth could slow revenue growth, didn't accurately portray the impact on Facebook's revenue growth.
The analyst opinions, which were published based on that updated offering document, would have revealed the "material information" but was "selectively disclosed," the suit alleges, citing news stories from Business Insider and Reuters as evidence.
(Excerpt) Read more at online.wsj.com ...
Fake Books. Now nobody wins except Zuckies insiders and the Loyyyyyyyerrrrsss....what a zoo.
I really hope that someone recalls the Tax Numbers California planned and budgeted from the IPO and how that influenced the Underwriters...
The good news is Aaron Sorkin has more than enough material to write a sequel for “The Social Network” when he’s on his next cocaine bender.
“Your honor, we’re idiots, but it’s someone else’s fault. We want money.”
Not if I'm the judge. "Case dismissed for aggravated and extreme stupidity. Dumb-ass plaintiffs to pay all costs. Next case!"
Let's see where it settles in a month or so . . . after the initial news hype has died down.
That $35 per share is 100 times earnings ... earnings that are shrinking as people move to new mediums and abandon Facebook because their grandparents are on it now.
I am thinking more like $4 per share.
LOL, I drove 1000 miles to find the pot of gold at the end of the rainbow and now someone should reimburse me for my gas.