Massachusetts Subpoenas Morgan Stanley Over Facebook

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More bad news for Facebook and its lead underwriter, Morgan Stanley.

Massachusetts Secretary of Commonwealth is subpoenaing Morgan Stanley over the issue of analyst disclosures, Reuters reports.

Reportedly, Facebook and Morgan Stanley told clients that Facebook’s business was not going to be as strong as expected. It did not disclose that publicly, though.

If this is true it’s trouble for both companies.

For more read: EXCLUSIVE: The Inside Story Of What Happened With Facebook’s IPO

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