As Finra and the SEC investigate allegations that analysts cut their Facebook (FB -8.9%)...

As Finra and the SEC investigate allegations that analysts cut their Facebook (FB -8.9%) estimates ahead of its IPO and only shared the info with select clients, a source tells BI the estimates were cut because a Facebook exec told them to. Backing up this claim is a May 11 Bloomberg column in which sources claim Facebook is telling analysts its sales "may not meet their most optimistic projections."

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Comments (10)
  • hsoneji
    , contributor
    Comments (17) | Send Message
    Is there a concept of recall or redo with an IPO?
    22 May 2012, 07:13 PM Reply Like
  • Surfer Steve
    , contributor
    Comments (18) | Send Message
    No, but there is the concept of remediation through class action lawsuits. This is going to keep an army of lawyers busy for the next 5 years.
    22 May 2012, 07:38 PM Reply Like
  • hsoneji
    , contributor
    Comments (17) | Send Message
    Ok so you mean the busy lawyers will make the $ for next 5 years and then give people who lost 20% on FB stock a settlement of $0.01 per share.. SEC should have delayed the IPO if there was news floating around about analysts estimates ..
    22 May 2012, 08:04 PM Reply Like
  • Dana Blankenhorn
    , contributor
    Comments (13506) | Send Message
    No one is even considering a possible political impact from all this double-dealing and insiders stuffing outsiders.


    It's like the 5% get screwed by the 1%, the 1% by the .01%, and on and on. Hard to see that adding up to political success, if even the 5% figure out the game. As they will from this.
    22 May 2012, 07:13 PM Reply Like
  • joemarolla23
    , contributor
    Comments (48) | Send Message
    in my opinion facebook went public just to make the very important people really wealthy and the little people pay for it. you couldn't force me to buy facebook stock . i can't believe people sold their shares of apple to raise cash for this garbage. facebook could not hold a candle to apple. yes, i am long apple stock because it is a rock solid company with brilliant minds.
    22 May 2012, 08:08 PM Reply Like
  • chrtrbrkr
    , contributor
    Comments (8) | Send Message
    You said it, brother!
    22 May 2012, 11:47 PM Reply Like
  • Papaswamp
    , contributor
    Comments (2241) | Send Message
    Total sucker play...and the number of banks and investors involved is large. They should all be indited.
    22 May 2012, 09:12 PM Reply Like
  • Stoploss
    , contributor
    Comments (1713) | Send Message
    By the time the lock up expires, there won't be anything left to short either. Epic indeed.
    22 May 2012, 09:33 PM Reply Like
  • joebplumbing
    , contributor
    Comments (6) | Send Message
    very disappointed with fb.and the news today that marczukenberg sold 30million shares of fb today,can someone tell me why
    23 May 2012, 12:01 AM Reply Like
  • wald22
    , contributor
    Comments (409) | Send Message
    @joeplumbing - he still holds 430 some million shares. So dumping 30 million to him is a smart move. But what I don't like is what he did. He increased the share IPO from 337m to 421m shares. This gave the typical by and hold investment more shares then they wanted so they sold the excess. The underwriters divved up more shares to hedge funds who think long term is 7 minutes or more. More shares were allocated to individual investors. When the IPO didn't pop up 100% they spooked. The market as is already has them spooked. Many have learned to take a small ,loss imediately instead of waiting for days to make a big loss. The fact that institutions like Goldman Sacks and others who purchased a lot of shares from the insiders pre IPO and dumped those share didn't help matters. Truth be told insiders were cashflowing FB by selling shares. I also beleive that will continue, even as a public company. Investors need to understand that FB needs them to cash flow the company.
    23 May 2012, 06:16 AM Reply Like
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