Facebook Must Face Shareholder Class Actions Over IPO

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It looks as though Facebook will be facing at least two class action lawsuits relating to the company's IPO back in 2012. Facebook says it will appeal the ruling.

U.S. District Judge Robert Sweet in Manhattan said retail and institutional investors who claimed they lost money by purchasing Facebook shares at inflated prices may pursue their respective claims as groups. The decision is dated Dec. 11 but had been kept under seal, which Sweet lifted in an order made public on Tuesday.
 
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So, you buy shares, lose money knowing all along that there is a risk involved and can now demand your money back? Sounds to me like they were doing some insider trading and it backfired on them. Maybe they should sue Ford and Chevy since they lost money as soon as they drove their car off the lot as well? This is really, really........ :rolleyes:
 
I don't see how this is a class action type of lawsuit ... if Facebook lied on their IPO then that is a federal securities violation and they should pursue criminal action against them ... if they didn't violate federal law I don't see how there is a civil action here ... every prospectus I have ever seen ends with the standard disclaimers ("these statements are forward looking and are based on reasonable risks and uncertainties ... there are always risks and uncertainties with forward looking statements ... etc") ... the stock market always has some level of uncertainty and risk and I would agree with FB that this seems like a weird precedent
 
I don't see where they have a case. So the IPO was overpriced and didn't do as well as expected, that is a lot of IPO. Doesn't make it a sueable thing, just makes people an idiot for thinking they were going to get rich off their investment and losing money.
 
Has Facebook made any money? Hell not even the oculus is ready, and the htc /steam looks better anyway.
 
If you don't like the price, don't pay it.
This get out of jail free mentality the rich are afforded is what has us in a constant recession.
 
I'm pretty sure the constitution protects us from loosing. There is like a lot of amendments and I'm sure one of them pertains to this. Or at least it should.
 
Kalabalana said:
If you don't like the price, don't pay it.
This get out of jail free mentality the rich are afforded is what has us in a constant recession.
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Its not just the rich, bub. People top to bottom invest. If you are intentionally misled, well, there are consumer protection issues. Just like false advertising.
Artificially inflating/devaluing investments are both criminal and civil offenses
 
alxlwson said:
Its not just the rich, bub. People top to bottom invest. If you are intentionally misled, well, there are consumer protection issues. Just like false advertising.
Artificially inflating/devaluing investments are both criminal and civil offenses
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There is a difference between artificially fucking with numbers and analysis greatly over thinking what you are worth.

You have to be able to show the criminal side before you can show the civil side. Unless they can show they did something illegal to start with, they just were incorrect in their estimate for what the value of the company would be. You can't sue for that, you can't just sue because a business didn't make the profit you expected them to.

The courts do have to allow this to go to trial, doesn't mean they win, but they really can't stop this from going to trial. That doesn't mean it is a valid case or that it should have been brought to trial to start with.
 
ManofGod said:
So, you buy shares, lose money knowing all along that there is a risk involved and can now demand your money back? Sounds to me like they were doing some insider trading and it backfired on them. Maybe they should sue Ford and Chevy since they lost money as soon as they drove their car off the lot as well? This is really, really........ :rolleyes:
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Its not so much because they lost money (if they held on they wouldn't of lost money or much anyways). The filing is because people are saying the banks purposely drove up the initial cost of the stock, which is illegal.
 
Trimlock said:
Its not so much because they lost money (if they held on they wouldn't of lost money or much anyways). The filing is because people are saying the banks purposely drove up the initial cost of the stock, which is illegal.
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So why are they suing FB instead of the banks :confused:
 
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