Skip to comments.Facebook Inc(NASDAQ:FB): Milberg LLP Announces Class Action Lawsuits Filed Against Facebook, Inc.
Posted on 05/30/2012 1:21:26 PM PDT by Red Badger
NEW YORK, May 30, 2012 (MeshPress) Milberg LLP announces that class action lawsuits were filed in the United States District Court for the Southern District of New York on behalf of purchasers of Facebook, Inc. (Facebook) FB -2.29% common stock pursuant to the Companys May 18, 2012 initial public offering (the IPO). Actions were also filed in the Northern District of California.
The complaints charge Facebook, certain of its officers and directors, and underwriters of the IPO with violations of the Securities Act of 1933. The actions allege that the Registration Statement and Prospectus issued with the IPO were false because they did not disclose that the Company experienced a reduction in revenue growth, and that underwriters lowered revenue guidance during Facebooks road show.
On May 18, 2012, Facebooks Prospectus became effective and Facebook sold 421 million shares to the public at $38, for total proceeds of more than $16 billion. Shares of Facebook fell 18% over the following two trading days to close at $31 on May 22, 2012, amid revelations about the lowered guidance.
If you purchased Facebook shares, you may, no later than July 23, 2012, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a class member that represents other class members in directing the litigation. Your share in any recovery will not be affected by serving as a lead plaintiff, however, lead plaintiffs make important decisions that could affect the overall recovery for class members. You do not need to be a lead plaintiff to recover. You may retain Milberg LLP, or other attorneys, for this action, but do not need to retain counsel to recover. If this action is certified as a class action, class members will be automatically represented by Court-appointed counsel. The complaint in this action was not filed by Milberg.
A dozen scumbag johnedwardsian lawyers get filthy rich and the boob plaintiffs get free Facebook registration for life.
There is risk in the stock market, AND the world is not perfect.
Let's all sue (for micro crumbs while the fungus lawyers get filthier richer).
Whatever happened to “buyer beware” and risk versus reward ?
There is no sure get-rich-quick scheme. Millions might use Facebook now (including me), because it is fun and we are “nebby”, LOL. For a while it will probably still be part of our lifestyles and at least once a day we will log on to the site to peek into other’s worlds, or to brag or complain, or just pass the time. But interest and use will die out. People are also fickle, and get bored. Something new will come along. Thinking that Facebook was a long lasting safe bet seemed unwise to me. But that’s JMHO.
I doubt the sellers would be stupid enough to commit fraud to bump the price up, especially since the media was relentlessly hyping it up for them.
But the lawyers will make some more bucks. The suckers get a lollipop and a footprint on their asses.
There absolutely is risk in the market, and the world is far from perfect. Back when fundamentals mattered, it was easy to guage risk and evaluate a company’s performance to determine the future earnings potential.
FB and its underwriters withheld critical information (the downward revisions to revenues) from the prospectus as well as in the media circus that led up to the IPO. That is securities fraud.
It is the underwriters who are likely at fault, as they hung their hat on the prospect of earnings from a hugely inflated IPO. FB is a dog with fleas. 100x PE - give me a break. Google once IPO’d at 100x earnings, but they offer a tangible product and revenue producing services. FB - offers nothing and hasn’t figured out how to grow revenues in the face of declining users and advertising revenues in a dead fall.
Those who failed to see the obvious bought into nothing but hype and a slick game of three card monty. Those who knew (underwriters and insiders) were busy dumping their shares and taking short positions while Joe Retail investors got screwed by listening to Cramer on CNBS.
We coulda all been contendas shorting that sucker!
I think the guys trying to pull the fraud got caught themselves. Institutions bought boat loads at 38 thinking they could dump it out onto credulous small investors.
The small investors didn’t buy. The institutions are desperately trying to salvage what they can.
That means all the people at the top were probably issued a written legal opinion dictated by drones paid by FB to give the IPO project a “pass.” Naughty Naughty — you creepy slimes and greedy bastards. The lawyers ought to be prosecuted as well as the top execs at FB and MS. Let them all fry in their own weepy crocodile tears and greedy grease.
Selling an IPO at $ 38 when it only worth about $ 11 is a crime and the guilty parties all belong in jail. They will surely be tied up in court for the next five years.
Anybody else want to buy a hot IPO from MS ___ ?
” Facebook shares now about $ 28 . . . and falling. “
27.15 currently...best bid 27.10
FB = 26.8