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Shareholders Turning Against Facebook and Lead Underwriters
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Description
FBN's Shibani Joshi breaks down shareholder complaints about Facebook.
- Duration 2:21
- Date May 23, 2012
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Transcript
This transcript is automatically generated
It's as well.
Meantime Wall Street Journal is now reporting news that's breaking.
That Morgan Stanley the other underwriters in the FaceBook deal ended up making a profit of a hundred million dollars ended up making 100 million.
On the offering that's come out from the Wall Street Journal.
Meanwhile Dow Jones had a report that Morgan.
Has processed nearly all of the FaceBook orders -- told you about that a little while ago it's coming after numerous.
FaceBook investors filed lawsuits against the NASDAQ for mishandling this whole deal and Shibani Joshi now with word on some shareholder complaints -- Hi EI EI Connell welcome to life in the public arena you've got regulatory reviews you've got lots is out -- -- zoo.
And and and you -- share price fluctuations also up and down every single day face that shares actually -- higher today but.
We're seeing Facebook's shareholders turning against a company turning against.
This social network and it's -- underwriters we are learning today that there's actually been to class action lawsuits one -- California.
And once here in New York claiming an accusing the underwriters of concealing revised growth forecast.
During the IPO process as part of the shareholder lawsuit.
They are saying net revenue revised revenue could projections were selectively disclosed by defendants -- certain preferred investors.
And plaintiffs and the class have a sustained damages as a result as we know shares of FaceBook -- fallen about 22%.
From the IPO.
On Friday a lot of volatility here you -- just talking about.
Morgan Stanley in the underwriters making a hundred million dollars -- a lot of investors have -- to millions on this fluctuation.
Even sell Morgan Stanley standing behind its moves coming out with a statement on Tuesday saying quote.
That they followed this same procedure for that FaceBook -- frame that it follows for all IPOs.
These procedures are in compliance with all applicable regulations we know that investors are turning against the NASDAQ turning against it.
Morgan Stanley also now attorney against FaceBook this is getting Bay Area very messy.
And you better believe investors wanna get to the bottom of exactly what happened and who is to blame the we're not to blame in the failed execution of their the largest tech IPO we've ever seen.
Tonight thank you so much for that money Joshi an --
