Shalom Life | March 29, 2015

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.

Facebook Integrates Israeli App into Messenger Facebook Integrates Israeli App into Messenger TrendingToronto's Iconic Pancer’s Deli To Reopen Toronto's Iconic Pancer’s Deli To Reopen TrendingDisney Producing Animated Series in Jerusalem? Disney Producing Animated Series in Jerusalem? Trending
 

Wales Defeats Israel 3 - 0 in EURO 2016 Qualifiers

March 28, 2015 | By Daniel Koren
Wales Defeats Israel 3 - 0 in EURO 2016 Qualifiers

The blue-and-whites experienced their first loss of the EURO 2016 qualifying matches at home in Haifa

Read More

Op-Ed: Obama, not Netanyahu, is Killing the Two-State Solution

March 27, 2015 | By Ben Cohen, JNS.org
Op-Ed: Obama, not Netanyahu, is Killing the Two-State Solution

The U.S. President has never really empathized with the emotions that govern Israeli perceptions of the wider region

Read More

Op-Ed: Lena Dunham’s 'Dog or Jewish Boyfriend' Piece is Thoughtless and Offensive

March 27, 2015 | By Caitlin Marceau
Op-Ed: Lena Dunham’s 'Dog or Jewish Boyfriend' Piece is Thoughtless and Offensive

In her latest literary endeavour, 'Girls' star Dunham tries to come across as funny by comparing her boyfriend to a dog; she doesn't

Read More

James Deen to Play Himself on Showtime's 'Happyish'

March 27, 2015 | By Daniel Koren
James Deen to Play Himself on Showtime's 'Happyish'

The prolific Jewish porn star will appear in a cameo on the new show out on April 26th

Read More

Woman Exposes Herself To Minors At Arizona Bar Mitzvah

March 27, 2015 | By Caitlin Marceau
Woman Exposes Herself To Minors At Arizona Bar Mitzvah

Lindsey Radomski is being charged by police after allegedly exposing herself to, and performing oral sex on, minors at a Bar Mitzvah this past Saturday

Read More

Association Assisting Holocaust Survivors Needs Your Help To Make Their Passover Seder Possible

March 27, 2015 | By Caitlin Marceau
Association Assisting Holocaust Survivors Needs Your Help To Make Their Passover Seder Possible

The group, which holds an annual Passover Seder, is in danger of having to cancel their event due to the lack of funds needed to help the 450+ survivors who, without them, will be celebrating alone this year

Read More

Shortly Before they Died in Brooklyn Fire, the Sassoon Children Recorded This Emotional Song [VIDEO]

March 27, 2015 | By Tali Farkash & Liron Nagler-Cohen
Shortly Before they Died in Brooklyn Fire, the Sassoon Children Recorded This Emotional Song [VIDEO]

Song is their own version of Hasidic singer Yaakov Shwekey's hit "Cry No More"

Read More

Facebook Integrates Israeli App into Messenger

March 26, 2015 | By NoCamels Team
Facebook Integrates Israeli App into Messenger

Social media giant incorporates Magisto, an app that turns photos and videos into a short animated film

Read More

More Headlines