It ’s been more and more apparent that there was some shady — though not necessarily illegal!—activityfrom Facebook ’s bank advisorsin the lede - up to thecompany ’s IPO last hebdomad . And now , investor who got the shaft are trying to get their money backthrough the courts .
https://gizmodo.com/wsj-blame-morgan-stanley-for-facebooks-woeful-ipo-5912571
At issue : Morgan Stanley , Facebook ’s IPO sherpa , was encouraging its node to up its initial price while at the same timecutting its estimatesfor Facebook ’s future financial success . What ’s regretful , they managed to whisper that last bit into the ears of their jumbo institutional client while managing to keep it overcloud from Joe Investor . Who is now , understandably , pissed .
It ’s too early in the proceedings to know whether this would actually ever go to motor inn ( unlikely ! ) or how much Facebook would end up on the hook for in a closure ( lots ! ) . But what is clear is that there are a hatful of unhappy investors out there who allegedly got take for a ride . Good for them for wanting to get to the bottom of it . [ BusinessInsider ]
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