From the WSJ: If you're one of the shareholders suing Facebook ( FB
+3.22%) because the social-networking company and its underwriters played
favorites about disclosing changes to analysts' forecasts, then you deserve to
be compensated for your losses or have your trades wiped out if the allegations
turn out to be true.
Still, that doesn't mean you aren't an old-fashioned Wall
Street sucker. The reason: You didn't
have to follow Facebook's initial public offering with the zeal of Robert Caro
to recognize there were significant problems.
Consider that as Facebook readied its IPO, there was a lot
of shifty business: On May 15, the price was boosted to $38 from a range that
bottomed at $28. The next day, the offering size swelled by 50 million shares.
Then came a disclosure that insiders would sell 53% more shares, or 84 million
shares, in the IPO than previously planned….
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