Over the next two days, Morgan Stanley and the other underwriters called their top institutional clients, including mutual-fund giants Fidelity and Capital Research and Management, saying their analysts had lowered Facebook's earnings and revenue estimates, according to people familiar with the matter.

WSJ: Morgan Stanley Was 'Driver' on Facebook's Wild IPO Ride

Fidelity and Los Angeles asset-management firm Capital Research expressed concerns to Morgan Stanley, according to people briefed on the conversations.

WSJ: Morgan Stanley Was 'Driver' on Facebook's Wild IPO Ride

Lynch eventually took over as director of research for the small investment mutual fund company and in 1977 took over portfolio management of Fidelity's Magellan mutual fund.

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