Why are investors suing facebook when they made a free market decision to purchase FB shares at listed price?

[Talibama]

*Investors should consider the investment objectives, charges, expense, and unique risk profile of an Exchange Traded Fund (ETF) carefully before investing. Leveraged and Inverse ETFs may not be suitable for long-term investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies. A prospectus contains this and other information about the ETF and should be obtained from the issuer. The prospectus should be read carefully before investing. Bla bla bla-does this ring a bell to these claimants before they chose to invest in facebook? They wouldnt be moaning if they had an 18% gain, but are made at an 18% loss. That is the name of the game, your risk your reward-you will have both.
@1%-yeah your right, I just stole this off the internet even though it may not apply to these individuals investments. I am just trying to highlight an investment disclaimer that would be associated with any stock purchase. These people should have read the fine print concerning their stock purchase. They chose to disregard the warnings and proceed with their purchase-their fault.
@Fizzle-most stock investors dont have the same information that the elite has. To us its insider trading, to them its perfectly legal. You dont see nancy pelosi sitting behind bars do you? martha stewart only got 1 year house arrest for a very serious crime-wow, she learned her lesson! You would be thrown in jail for 10+ years if you were caught insider trading. If you dont feel that you have enough information to purchase a particular stock, then dont. Nobody made these people buy facebook stock.

[Bill_the_Dog]

lol--I told all the dumba$$ cons in here to not buy facebook last week & they all, in uinison, told me how dumb I was

so how's that investment working out so far, cons??

drknowitall--wow, nice prognostication after the fact. roflmao--cons are so dumb

[Dufus]

Because people were kept in the dark by the big boys that knew about it being downgraded.

In other words people were cheated.

Bill you are full of crap, I dont recall anyone saying FB was a good buy

[Gang]

A large percentage of the investors were liberals and they thought it was a sure winner like they did with Obama.

[Chlor Form]

It's called free market, sh!twit.

A true free market regulates itself, needs no contract enforcement nor government protections of property.

[The 1%]

First of all, Facebook is not an ETF.
ETF means Exchange Traded Fund, a mutual fund which trades like a stock.

That being said, you might be correct.
The Facebook IPO was a rigged game.
Anyone wanting to play in a rigged game should get burned.
And unrigging the game would not be possible because it violates the spirit of deregulation.

[KitKat]

I agree they made their bed...now they have to lie in it whether they like it or not.

Unfortunately suing for whatever reason (frivolous or not) is the "in" thing to do now. If more judges would throw these ridiculous lawsuits out then people would be less willing to start them in the first place.

[ToxicP125]

The company (and underwriters) have a duty to notify the investing public of anything that is "material" to the business. Not telling the greater public that the last quarters "earnings" DROPPED until a few days AFTER the shares have been released to the public (when it was a KNOWN fact) is a major NO NO.

[Dr. Knowitallâ„¢]

Bill is full of crap.

Reality shows conservatives are more knowledgeable about how the economy works than liberals.

Facebook is a bad buy.

[Sam]

Because companies cannot be listed on an exchange in the first place unless they conform to certain financial disclosure laws. If those disclosures misrepresent the actual state of the company by, for example, inflating income or failing to report the full extent of the corporation's liabilities, then the investors have been defrauded. A company that makes false statements in its IPO documents is most certainly civilly liable for those false statements. It's called "fraud," and while very specific rules regarding fraud apply to listed companies, the general fraud rule is easy to understand: if people rely on your lies to make investment choices, they can sue you for the resulting loss.

If it didn't work that way, and companies could freely list themselves on an exchange while lying about the financial state of the company, no one would EVER buy stock in any company at all and as a result the exchange system would collapse. The economic consequences of that would be devastating.