Facebook Inc. (NASDAQ: FB) shares are ticking back up as we approach noon today. Nearly 56 million shares have traded hands so far this morning, making it today’s second most active stock. And now Reuters is reporting that analysts at Morgan Stanley (NYSE: MS), JPMorgan Chase & Co. (NYSE: JPM), and Goldman Sachs Group Inc. (NYSE: GS) cut estimates on the shares even as the company and its bankers were performing their roadshow before the IPO.

According to a report at Business Insider:

But, just as important, news of the estimate cut was passed on only to a handful of big investor clients, not everyone else who was considering an investment in Facebook.

That’s a big no-no because such information is “material” according to the SEC and selectively disseminating news about a company implies insider trading.

The SEC, along with ahandful of other government agencies, have begun investigating the Facebook IPO. As the days pass, more goodies land on their plates.

Shares are down about -2.5% just before noon, at $33.34.

Paul Ausick

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