Facebook, Zuckerberg Sued Over IPO

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It sure seems like the less we want to hear about Facebook, the more the company is in the news.

The defendants, who also include Facebook Chief Executive Officer Mark Zuckerberg, were accused of concealing from investors during the IPO marketing process "a severe and pronounced reduction" in revenue growth forecasts, resulting from increased use of its app or website through mobile devices. Facebook went public last week.
 
As far as investors go, how anyone can claim to be mislead about the value of Facebook stock is laughable.
 
As far as investors go, how anyone can claim to be mislead about the value of Facebook stock is laughable.

I completely agree with this.
Although I do use facebook, I just couldn't do the math as to how it was worth $100 per "member". If someone bought stock at the high point, and it tanked, that's the risk of ANY investment. Did FB mislead people? If they did, those that were "mislead" sure the hell followed along without asking any questions...
 
US hipsters get taken for a ride. Shocking and we wonder why this is the fault of the business sector. Remember, Zuckerdouche didn't want facebook to go public, but regulatory rules forced him into it. Remember that the next time you here the whining like this. THE GOVERNMENT RULES forced this company into this position.
 
I thought we were done talking about FB a few FB posts ago, Steve. Or is this schadenfreude doing the posting? :D
 
states right in the prospectus that he isn't primarily interested in profit

but of course once he figures out how to monetize mobile users and habits then it's game on

I'm sure he's working on it and if anyone stands a chance to create something that works he's demonstrated that he has what it takes so we shall see
 
So, can I sue the Vegas casinos when I lose money to them too? :confused:

1272584893941.jpg
 
As far as investors go, how anyone can claim to be mislead about the value of Facebook stock is laughable.

Actually there is a claim going on right now that is exactly that - it seems some or all of the underwriters that worked with Facebook for the IPO (Morgan Stanley in particular, but Barclays and JPMorgan might be too) saw the advertisement revenue and adjusted their value for Facebook just prior to the IPO. But they only told a few select investors about the 'real' (lower) assessment, and continued to tell everyone else it was great.

This is on top of earlier criticism that Facebook and its IPO backers where bilking non-instituitional investors through a combination of boiler room hype and pumped up prices (buy at a low unit price, then split and sell it at a much higher price with lots of fees, taking advantage of investors less savy about price manipulation tactics).
 
Actually there is a claim going on right now that is exactly that - it seems some or all of the underwriters that worked with Facebook for the IPO (Morgan Stanley in particular, but Barclays and JPMorgan might be too) saw the advertisement revenue and adjusted their value for Facebook just prior to the IPO. But they only told a few select investors about the 'real' (lower) assessment, and continued to tell everyone else it was great.

This is on top of earlier criticism that Facebook and its IPO backers where bilking non-instituitional investors through a combination of boiler room hype and pumped up prices (buy at a low unit price, then split and sell it at a much higher price with lots of fees, taking advantage of investors less savy about price manipulation tactics).

100:1 valuation to earnings ratio.

You don't need an expert to tell you that it was overpriced.
 
it's still exactly where it was initially priced to be

man you guys are funny...you can't determine something in a week
 
So, little ol me, with my limited stock portfolio, experience with stocks, and bank account the size of a walnut knew to stay away from this stock... I've posted two or three times warning to stay away from this one.

I mean, really... What can you expect from a company who's sole purpose was to "connect people" so that they could get your information and trade you on the public market?

I guess the laws of morality are lost somewhere after you make over 100k a year. I'm sure if you value your company at 100billion, you've made some sort of pact with the devil. :eek::eek:
 
Actually there is a claim going on right now that is exactly that - it seems some or all of the underwriters that worked with Facebook for the IPO (Morgan Stanley in particular, but Barclays and JPMorgan might be too) saw the advertisement revenue and adjusted their value for Facebook just prior to the IPO. But they only told a few select investors about the 'real' (lower) assessment, and continued to tell everyone else it was great.

This is on top of earlier criticism that Facebook and its IPO backers where bilking non-instituitional investors through a combination of boiler room hype and pumped up prices (buy at a low unit price, then split and sell it at a much higher price with lots of fees, taking advantage of investors less savy about price manipulation tactics).

Last time I checked people go to jail for doing this. Heck, didn't Martha Stuart do jail time for selling stock using non-public information? These guys is the allegations are true deserve at the very least jail time.
 
Last time I checked people go to jail for doing this. Heck, didn't Martha Stuart do jail time for selling stock using non-public information? These guys is the allegations are true deserve at the very least jail time.

And those people are typically fall guys. Insider trading, despite being illegal, is heavily indoctrinated. If you wanted to get rid of it, you'd probably have to arrest everyone on Wall Street and all these IB's.

The problem is, the people that are running these schemes are full of such hubris because of all their money and power that they're practically blatent about their illegal activities. It's like the scene in American Gangster where Denzel Washington shoots the guy in public and walks back to the restaurant to finish eating.
 
I just created a company. I value it at $100 billion. It has 3 shares, I am selling one for $33.3 billion, does anyone want to buy it?

Yea, that's about the same amount of credibility I put into the people who priced the stock. At the end of the day, it's buyer beware.
 
And those people are typically fall guys. Insider trading, despite being illegal, is heavily indoctrinated. If you wanted to get rid of it, you'd probably have to arrest everyone on Wall Street and all these IB's.

The problem is, the people that are running these schemes are full of such hubris because of all their money and power that they're practically blatent about their illegal activities. It's like the scene in American Gangster where Denzel Washington shoots the guy in public and walks back to the restaurant to finish eating.

I can definitely see this. Its as almost after a certain dollar amount people start looking the other way I guess. Martha Stewart sold her shares to save herself a loss of 45K and did jail time.

These crooks made millions if not billions and i'm sure they are still wiping their butts with benjamins. It seems that as humans when numbers get really big our brains shut down and we follow the herd regardless of direction even if its off a cliff.
 
I just created a company. I value it at $100 billion. It has 3 shares, I am selling one for $33.3 billion, does anyone want to buy it?

Yea, that's about the same amount of credibility I put into the people who priced the stock. At the end of the day, it's buyer beware.

Whats your stock symbol? I don't care what your revenue is I just want to buy your IPO cheap and cash out 67 seconds later after we are done pumping it!
 
Get a load of this utter bullshitness

Facebook Shares Up After Firm Issues 'Buy' Rating

Needham & Co's coverage on Facebook is a rare positive take on the shares of the social network after they lost nearly a fifth of their value since the company's stock started trading last Friday.

http://www.cnbc.com/id/47535262

One of 2 things

1- These clowns got PAID to make that call
or
2- These clowns lost big time aka client money and is hoping for a prayer that this will save their ass's.

Either way Needham & Co's deserves and reaps a good tool shed whopping. Hope that joke of company goes down in flames over this.
 
Let me change that to 3

or
3- These clowns got a call from MS or other under-writer to do this. The under-writers credibility is shot to hell right now and they MS, JPM, GS and whoever I have no tlisted knows full well not to make such a call.
 
according to this article there's good reason to believe that the large sell-off was due to the nasdaq break-down: http://www.cnbc.com/id/47520037

LOL and you believe the NASDAQ, common now you have to be smarter than that.

Farcebook was going down in flames from the gitgo. Word got out of the shaddy MS good ol boy network and the back room re-valuation that went on just prior to the IPO debute.

NASDAQ had no choice but pull the plug for 2 hours or FB would have crashed right thru the 30 dollar range and keep on going down. Over at ZH they show exactly what went on. Once you see what went on and the charts its clear that NASDAQ had a serious issue and it wasnt a technical issue. It was a confidence issue and people were bailing left and right to GTFO.
 
according to this article there's good reason to believe that the large sell-off was due to the nasdaq break-down: http://www.cnbc.com/id/47520037

Honestly, I wouldn't trust CNBC at all with their analyst valuations of Facebook (nor would I trust News Corp).

There's finger pointing galore at what went wrong, but my best suggestion is if you really want to see why things happened the way they did, and whether or not it's worth investing in Facebook or when it's worth investigating, follow the money (talking about the big boys here, not Joe Walmart investor).

Although, from all these articles, I'm getting a laugh for the new term I've never really seen. To be considered part of the elite is to be considered bad, but to be considered part of the sophisticated institution is considered good.
 
Honestly, I wouldn't trust CNBC at all with their analyst valuations of Facebook (nor would I trust News Corp).

There's finger pointing galore at what went wrong, but my best suggestion is if you really want to see why things happened the way they did, and whether or not it's worth investing in Facebook or when it's worth investigating, follow the money (talking about the big boys here, not Joe Walmart investor).

Although, from all these articles, I'm getting a laugh for the new term I've never really seen. To be considered part of the elite is to be considered bad, but to be considered part of the sophisticated institution is considered good.

The part in bold and italic is truth. Follow the money and you will see the real deal.
 
it's not an analysis of the valuation of facebook

read the article :\
 
I completely agree with this.
Although I do use facebook, I just couldn't do the math as to how it was worth $100 per "member". If someone bought stock at the high point, and it tanked, that's the risk of ANY investment. Did FB mislead people? If they did, those that were "mislead" sure the hell followed along without asking any questions...

some site i was reading actually said Facebook value per user is one of the lowest around compared to other companies like yahoo and such, something like $.04 per person per day or week .. don't recall exactly, but by no means were people worth $100 each..
 
US hipsters get taken for a ride. Shocking and we wonder why this is the fault of the business sector. Remember, Zuckerdouche didn't want facebook to go public, but regulatory rules forced him into it. Remember that the next time you here the whining like this. THE GOVERNMENT RULES forced this company into this position.

Uh... no. He could have kept it from going public if he wanted to.
 
Anybody who bought it, got exactly what they deserved.

It's like suing powerball lottery because you didn't win.
 
So if he looses everything and is no longer a billionaire, will he be getting a divorce then ? :)
 
Funny. Morgan Stanley, JP Morgan, etc fucked up the world economy and they're asking for bailouts. But good ol' Zuckerberg does some shady trading and the big banks go crying to court about how illegal it is.
 
what i hate more than facebook's bullshit stock price are sore losers who initiate a frivolous lawsuit because their pump n dump scheme didn't work on ipo day.

these guys deserve to lose their money. fuckers
 
Funny. Morgan Stanley, JP Morgan, etc fucked up the world economy and they're asking for bailouts. But good ol' Zuckerberg does some shady trading and the big banks go crying to court about how illegal it is.

what? the banks are not doing the suing.
 
what? the banks are not doing the suing.

It's confusing because every damn one of them is called Morgan. Morgan and Morgan (Law firm) are suing Morgan (Stanley) as well as (JP)Morgan and the other underwriters. The case will probably be precided over by (Judge) Morgan and a jury of 12 Morgans.
 
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