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Investors File Suit Against Facebook, Underwriters
Wall Street Journal ^

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 ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: bono; facebook; goldmansachs; morganstanley; trialawyerscum; u2; zuckerman; zuckersuckers
Overpriced to begin with.........
1 posted on 05/23/2012 7:49:47 AM PDT by Sub-Driver
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To: Sub-Driver

Fake Books. Now nobody wins except Zuckies insiders and the Loyyyyyyyerrrrsss....what a zoo.


2 posted on 05/23/2012 8:08:55 AM PDT by tflabo (Truth or tyranny)
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To: Sub-Driver; All
Lots of insider trading and short selling went on behind the scenes, and its all about to hit the fan now...

Morgan Stanley cut Facebook view pre-IPO: report (This info sent only to some major clients?)

Facebook's Zuckerberg sells 30.2 Million Shares

Exclusive: Massachusetts subpoenas Morgan Stanley for Facebook

3 posted on 05/23/2012 8:18:44 AM PDT by Timber Rattler (Just say NO! to RINOS and the GOP-E)
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To: Sub-Driver

Face-Bubble


4 posted on 05/23/2012 8:20:50 AM PDT by JaguarXKE (If my Fluffy had a puppy, it would look like the puppy Obama ate!)
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To: Sub-Driver

I really hope that someone recalls the Tax Numbers California planned and budgeted from the IPO and how that influenced the Underwriters...


5 posted on 05/23/2012 8:21:23 AM PDT by Steamburg (The contents of your wallet is the only language Politicians understand.)
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To: Sub-Driver

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.


6 posted on 05/23/2012 8:29:54 AM PDT by JacksonCalhoun (CT Yankee in NC Exile #quitblaminyankees)
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To: Sub-Driver

“Your honor, we’re idiots, but it’s someone else’s fault. We want money.”


7 posted on 05/23/2012 8:45:59 AM PDT by Larry Lucido
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To: Timber Rattler
and its all about to hit the fan now...

Not if I'm the judge. "Case dismissed for aggravated and extreme stupidity. Dumb-ass plaintiffs to pay all costs. Next case!"

8 posted on 05/23/2012 8:48:57 AM PDT by Larry Lucido
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To: Larry Lucido
There was no shortage of rational investment advisors telling people that Facebook was overpriced at $35 per share. The real value is around, perhaps, $20 per share.

Let's see where it settles in a month or so . . . after the initial news hype has died down.

9 posted on 05/23/2012 8:59:50 AM PDT by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: Vigilanteman

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.


10 posted on 05/23/2012 9:06:26 AM PDT by willyd (Opinions are like @holes, everyone has one)
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To: Sub-Driver

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.


11 posted on 05/23/2012 11:57:37 AM PDT by philetus (Keep doing what you always do and you'll eventually get what you deserve)
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