Facebook IPO: Morgan Stanley and Other Underwriters Earn $100M Profit – WSJ

Morgan Stanley (NYSE:MS) and Goldman Sachs Group, Inc. (NYSE:GS) were the underwritters for the infamous Facebook Inc (NASDAQ:FB) IPO debacle. The lawsuit claims that investors were misled in the purchase of the IPO. Morgan Stanley and Goldman set the offering price at $38 a share. The stock jumped at the open on Friday but soon started to fall. When the stock reached the $38 level, many in the media speculated that Morgan Stanley was buying shares of Facebook to prevent the stock from falling further. Breaking news from the Wall Street Journal is likely to infurate investors further. Gina Chon and Aaron Lucchetti…