Should we all join this lawsuit against facebook?

[news junkie]

People who invested in facebook last Friday are already suing the investment banks, facebook and Zuckerberg himself because they've lost money. The investment banks did raise the range of the IPO price shortly before the IPO and more shares were offered than expected, so more share for same amount of money equals lower price. Anyway, should we all join in the american tradition and join this lawsuit? Reality is not relevant, neither is the fact if anyone actually invested, it's just joining the opportunity to sue people, it's american tradition. It's now a human right to make money.

[Lost]

Yes. Lets screw 'em.

[Jamlord]

The stock market is a wealthier mans crap game.

[john]

The main complaint I've heard is that small time investors didn't receive information that the bigger investors had access to. However the info that was given to the bigger investors was widely available for at least a week before the IPO. It is an investment. It requires research. Anyone that did the research knew it was a bad investment. Anyone who bought it either didn't do the research or didn't heed the warning. So, no, they shouldn't get a dime. I'm betting the same people complaining about the stock price are still holding on to the stock hoping it'll jump tomorrow , so they get what they get.

[Riya]

Research analysts at several underwriters lowered their forecasts for Facebook after its May 9 prospectus cautioned investors about the possible impact of users shifting to mobile platforms. Facebook currently makes little revenue from mobile ads. However the point is if Facebook told analysts to materially lower their forecasts, it should have told the entire market.

Although trading is a speculative activity, its every company's responsibility to share their inside story correctly. So, Facebook is at Fault and people who have filed the suit are not completely wrong in what they are doing.

[xpatinasia]

Nope.

[giginotgigi]

If Facebook went bankruptcy, social media will be very quiet and many corporation lost their channels of marketing.

Just be patient, the price will go up eventually. Just some big-cheese manipulating the socket market so that they can earn much much more money.

[herbie7754]

I've got no sympathy for you whatsoever.
Where were you hiding with your head in the sand ?

The media was FULL of warnings AGAINST buying these shares, because Facebook's turnover and profit in no way matched the share price that was being offered.
For weeks and weeks it was all that was being talked about on the financial news bulletins.
All the information about this was discussed in great detail.
The only thing Facebook has to it's advantage is it's half a billion members, but their revenue from advertising is pitiful.
Why did you ignore these warnings ?
Very few serious investors even considered buying these shares.

Now you have these shares you have to hope that Facebook can substantially increase it's earnings from advertising, without alieanating their members.
Alternatively you have to have a great deal of trust in Zuckerberg's business talents, ie. that he uses the billions that Facebook now has in it's bank account, and turns this into huge profits.
Only then will the share price start to rise.
In the meantime you must prey that a rival social networking service does not become the popular choice of the masses !
Not very good odds in my opinion !

Welcome to the real world, where the right to make money isn't automatic. This fully depends on correct analysis of all the available information, and even then, investing is still just a risk !

And you want to waste even more money on a lawsuit !
Jesus !

[11UN]

While Facebook is certainly worth billions, if not tens of billions, of dollars, its stupendous value was grossly exaggerated.

I couldn't sue because I wouldn't buy shares at its given valuation.

[Max]

Yes the stock market involves a certain amount of risk and gambling BUT, investors have the legal right to all "accurate" financial information about a company in order to make educated decisions about investing, if/when a company like FB thinks they can withhold important information from potential investors - that is a clear breach of the rules and regulations, and not even Mark Zuckerberg should be allowed to get away with it. This is another sign of Zuckerberg's arrogrance, it's not the first time he's been accused of screwing people over with dishonesty, but people who invested in FB did so thinking Nasdaq and Morgan Stanley would be doing things right. If it's proven that things weren't done right and that investors really were mislead, they have every right to this lawsuit, everyone had the legal right to make educated decisions and we make those decisions based on the information being provided by Nasdaq and Morgan Stanley, if they provide inaccurate info or withhold important info, investors have been mislead and that's NOT OK.