Mark Zuckerberg and the other directors of Facebook have been slapped with a lawsuit claiming they defrauded investors in the company’s $104bn (£66.29bn) stock market float last week.
The suit – which also names Morgan Stanley, Barclays, Goldman Sachs and other banks who underwrote the flotation as defendants – follows allegations that at least one Facebook executive gave secret guidance to select analysts, thereby leading them to cut their forecasts for advertising revenues at the social network.
The secret guidance came in the final days of the investor roadshow, when Facebook and Morgan Stanley were seeking buyers for the $19bn of shares being sold by the company and its early investors, including Mr Zuckerberg himself.
The resultant reduced forecasts were only made available to a small number of large institutional investors, while other buyers in the flotation were kept in the dark, it is alleged.
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