Shalom Life | July 29, 2014

Facebook, Zuckerberg and Morgan Stanley get Sued by Investors

Suit filed against the social media giant over withholding negative information from the public for its IPO

By: David Shear

Published: May 23rd, 2012 in Business » World

Facebook, Zuckerberg and Morgan Stanley get Sued by Investors

This wasn’t supposed to go like this. Facebook, the internet darling and the savior of high-tech IPOs, was supposed to go gangbuster on the financial world. Investors expected to get in early and get rich quickly, but sometimes things don’t go according to plan, especially when greed is concerned.

Yesterday news broke out that Facebook, Morgan Stanley and a host of other underwriters withheld negative information about the social network’s initial public offering. On Wednesday, three investors sued Facebook and their CEO Mark Zuckerberg, along with Morgan Stanley, for unfair conduct.

"It appears as though material information was not disclosed," said Robert Weiser, one of the plaintiff lawyers in the class action suit. "We believe that the offering was conducted unfairly and it harmed public stockholders."

According to reports of the suit, which has been filed in the U.S. District Court for the Southern District of New York in Manhattan, Morgan Stanley shared negative information regarding Facebook’s upcoming quarter results with major clients ahead of their IPO, while withholding this information from the public.

The "revisions were material information which was not shared with all Facebook investors, but rather, was selectively disclosed by defendants to certain preferred investors and omitted from the registration statement and/or prospectus," the plaintiffs claim.

Other underwriters targeted by the lawsuit include JPMorgan Chase, Bank of America, Merrill Lynch, Barclays Capital and Goldman Sachs.

It is believed that more plaintiffs may join the class action lawsuit.

An Interview with Umami Burger Creator Adam Fleischman An Interview with Umami Burger Creator Adam Fleischman TrendingThe Israeli Version of Snapchat The Israeli Version of Snapchat TrendingZane Caplansky in Hot Water After Deciding to Sponsor Palestinian Film Festival Zane Caplansky in Hot Water After Deciding to Sponsor Palestinian Film Festival Trending
 

Shalom, Suriname: A Jewish Culture Guide

July 29, 2014 | By Ashley Baylen
Shalom, Suriname: A Jewish Culture Guide

This South American nature once held a community of settlers called Jodensavanne (the Jewish Savannah).

Read More

Larry David to Sit Down With David Steinberg For Rare Comedy Event

July 29, 2014 | By Ashley Baylen
Larry David to Sit Down With David Steinberg For Rare Comedy Event

The 'Curb Your Enthusiasm' creator is joining Steinberg for an exclusive events for Citi card members in Los Angeles.

Read More

Andrew Lloyd Webber is Suing Michael Cohl

July 29, 2014 | By Ashley Baylen
Andrew Lloyd Webber is Suing Michael Cohl

The 'Jesus Christ Superstar' composer is suing the Canadian producer

Read More

The Love Jewce: Why Ron Dermer and other NJB’s are Freaking Sexy

July 29, 2014 | By Andria Kaplan
The Love Jewce: Why Ron Dermer and other NJB’s are Freaking Sexy

A look at those "sexy Jewish men" who are making it known that they support Israel

Read More

New Zealand Cover Story Mistakes Jackass' Ryan Dunn for Slain IDF Soldier

July 29, 2014 | By Daniel Koren
New Zealand Cover Story Mistakes Jackass' Ryan Dunn for Slain IDF Soldier

The New Zealand Herald ran a cover story about late IDF Staff Sergeant Guy Boyland, but didn't use the right photo

Read More

Will Rising European anti-Semitism Lead to a 'New' Holocaust?

July 29, 2014 | By Daniel Koren
Will Rising European anti-Semitism Lead to a 'New' Holocaust?

European, Israeli leaders hold emergency session after "rising wave of violent anti-Semitic and anti-Israel demonstrations sweeping Europe"

Read More

An Interview with Umami Burger Creator Adam Fleischman

July 29, 2014 | By Peter Herriman
An Interview with Umami Burger Creator Adam Fleischman

We speak to the renowned chef and owner of the growing restaurant chain about burgers, chocolate fried chicken, and how he comes up with his unique recipes

Read More

American Rabbi Becomes First Non-Christian to Serve as U.S. Ambassador for Religious Freedom

July 29, 2014 | By Daniel Koren
American Rabbi Becomes First Non-Christian to Serve as U.S. Ambassador for Religious Freedom

Rabbi David Saperstein, head of the Religious Action Center, will work towards establishing international religious freedom

Read More

More Headlines