Facebook, Morgan Stanley Face Lawsuit, Investigation Over Alleged Selective Sharing Of Lower Revenue Projections
Were certain big-name investors made privy to information that should have been disseminated more widely? Such are the latest allegations with regard to last Friday’s Facebook initial public offering, which have led to a lawsuit filed against the social network and banks including Morgan Stanley today, following the call for an investigation yesterday by the Financial Industry Regulatory Authority and the Securities and Exchange Commission.
Were certain big-name investors made privy to information that should have been disseminated more widely? Such are the latest allegations with regard to last Friday’s Facebook initial public offering, which have led to a lawsuit filed against the social network and banks including Morgan Stanley today, following the call for an investigation yesterday by the Financial Industry Regulatory Authority and the Securities and Exchange Commission.
Reuters reported that a lawsuit was filed in U.S. District Court in Manhattan Wednesday, accusing Facebook, Co-Founder and Chief Executive Officer Mark Zuckerberg, and banks including Morgan Stanley of concealing “a severe and pronounced reduction” in revenue growth forecast from investors, alleging that the forecast revisions were “selectively disclosed by defendants to certain preferred investors,” rather than to the general public.
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