Morgan Stanley may refund some Facebook investors

May 24, 2012 By BARBARA ORTUTAY , AP Technology Writer

(AP) -- Morgan Stanley, the lead investment bank in Facebook's troubled initial public offering, will compensate retail investors who overpaid when they bought Facebook's stock in Friday's IPO, according to a source familiar with the matter.

The person said the firm is reviewing orders its retail clients placed for Facebook stock, and will make price adjustments if the clients paid too much. The person spoke on condition of anonymity because they were not authorized to discuss the matter publicly.

The person did not say what amount constituted overpaying for Facebook's stock.

The social network's IPO was highly anticipated. But technical problems on the delayed the stock's open on Friday. The stock closed nearly flat on its first trading day at $38.23.

Morgan Stanley and Facebook face at least two lawsuits over the IPO. Both suits allege that analysts at the large underwriting investment banks cut their second-quarter and full-year forecasts for Facebook just before the IPO and told only a handful of clients. Morgan Stanley has declined to comment on the lawsuits. has called the lawsuits "without merit."

On Thursday, Facebook's stock closed up $1.03, or 3.2 percent, at $33.03. This gives the company a market value of $90.4 billion, down from $105 billion at the end of trading on Friday.

Explore further: Tale of the tape: Google versus Facebook

0 shares

Related Stories

Tale of the tape: Google versus Facebook

May 17, 2012

Facebook is the hottest Internet company to hit the stock market since Google went public in 2004. The Silicon Valley companies, located seven miles apart, also happen to be locked in a bitter battle for Web surfers' allegiance ...

Regulators probe bank's role in Facebook IPO

May 23, 2012

(AP) -- Regulators are examining whether Morgan Stanley, the investment bank that shepherded Facebook through its highly publicized stock offering last week, selectively informed clients of an analyst's negative report about ...

Recommended for you

Team develops targeted drug delivery to lung

September 2, 2015

Researchers from Columbia Engineering and Columbia University Medical Center (CUMC) have developed a new method that can target delivery of very small volumes of drugs into the lung. Their approach, in which micro-liters ...

Not another new phone! But Nextbit's Robin is smarter

September 2, 2015

San Francisco-based Nextbit wants you to meet Robin, which they consider as the smarter smartphone. Their premise is that no one is making a smart smartphone; when you get so big it's hard to see the forest through the trees. ...

Team creates functional ultrathin solar cells

August 27, 2015

(Phys.org)—A team of researchers with Johannes Kepler University Linz in Austria has developed an ultrathin solar cell for use in lightweight and flexible applications. In their paper published in the journal Nature Materials, ...

Magnetic fields provide a new way to communicate wirelessly

September 1, 2015

Electrical engineers at the University of California, San Diego demonstrated a new wireless communication technique that works by sending magnetic signals through the human body. The new technology could offer a lower power ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.