SEC finds no wrongdoing (thus far) by Facebook prior to IPO
The SEC has found no evidence of Facebook withheld information from investors in its investigation of Facebook’s handling of its IPO prospectus prior to going public. The company was accused of such an act when reports came out that the company had contacted certain large institutional investors about increased risk factors, without making a point of emphasizing the bad news publicly. Facebook might have followed the rules, but reaching out to some investors while leaving retail shareholders out of dry is still not going to curry any favor with shareholders. [Source: Bloomberg]
