Page 4 - Ipo Process News Today : Breaking News, Live Updates & Top Stories | Vimarsana

lead analysts at morgan stanley, the main underwriter for the facebook ipo, received privileged information about the company, information that they didn't share with retail investors. finra, the financial industry regulation authority, regulatory authority, the u.s. senate banking committee, and the commonwealth of massachusetts have all announced probes into the matter, and that was quickly followed by a lawsuit filed by some investors against facebook and its ceo, mark zuckerberg, alleging that both withheld material information from investors during the ipo process. now, specific...

from investors during the ipo process. now, specifically they are talking about forecasts that revenue would be lower in 2012. facebook tells cnn, by the way, that the lawsuit is without merit. ron is a former s.e.c. investment attorney. henry blodgett, ceo of business insider, a website. back in 2003 henry settled a civil securities charge with s.e.c. he was banned from the securities industry. he's a good friend of our show. henry, i say this because it's relevant to our discussion. you probably know more about this now than most people do. >> unfortunately. >> if no laws were brok...

Money? they're starting to file lawsuits. they're filing class actions, one person is suing on behalf of everybody else. the everybody else is an enormous group. facebook sold 421 million shares of stock on the first day and this person suing saying i'm representing everybody that lost money because facebook didn't tell us what morgan stanley told facebook. >> here's what morgan stanley says regarding the i.p.o. process. morgan stanley followed the same procedures for the facebook offering that it follows for all i.p.o.'s. those procedures are in compliance with all applicable regulations. >> ...

Certificates inside your pocket there? >> how are they doing in there? >> what's happening? yesterday, there's news that facebook debuts. raises questions on the ipo process. i don't know if you can legally speak. you work for morgan stanley. >> are you allowed to talk about this, harold? >> or can we just talk about how bad of a stock facebook is? >> i'll share with you on the show, i stand by it. this company stands by it. there will be other people who come on and talk about this. i'm probably not the right person to do it. but i think a couple of months from now you'll look back and say th...

to answer any question you could possibly ask. but facebook represents something different. the idea that the internet and technology can bring people together and together the community you choose cure rates your entire journey through life. but is this a real shift in the motion important tool in the world or a fad that's peaked? can facebook live up to the hype? and if it really is a paradigm shift, can facebook dominate it? >> as no other network can, we've brought together cnn's best team covering this story. dan simon at facebook headquarters in menlo park, california, where ma...