Facebook Sued - The Faecesbook Clusterfuck

As I have noted twice today, the Faecesbook IPO is the IPO, for people who didn't touch the shares with a bargepole, that just keeps giving.

Reuters reports that Facebook Ince, Facebook Chief Executive Officer Mark Zuckerberg, and various banks including Morgan Stanley are now being sued by disgruntled investors. They are accused of concealing from the investors, during the IPO marketing process, "a severe and pronounced reduction" in revenue growth forecasts.

The Faecesbook IPO - Morgan Stanely Subpoenaed

Morgan Stanley have been subpoenaedas part of an investigation into whether its analysts communicated revisions of Faecesbook’s revenue forecasts broadly to all clients ahead of last week’s initial public offering.

As I said less than an hour ago, the Faecesbook IPO is the IPO that, for those who haven't touched these shares with a bargepole, that just keeps giving!

Faecesbook Shares Tanking

In the event that anyone is interested, shares in Facebook are tanking; they are currently trading at around $33 compared to its offer price of $38 and Friday high of $45.

Friday's IPO was severely marred by the failure of Nasdaq to do what it was meant to do, ie provide up to date price and trade information, instead it wallowed in 2 hour trade confirmation delays.

Now that the technical "snafu" has been sorted, and Morgan Stanley have stopped supporting the price, people have woken up to the fact that Faecesbook was massively overpriced.

No surprises there then!