Fury over facebook IPO grows, so do lawsuits.

[powderman]

http://www.yahoo.com/_ylt=AtqC0AY9b6XYYDR_wE8mtyGbvZx4;_ylu=X3oDMTVkYjFxcWdqBGEDRnVyeSBvdmVyIEZhY2Vib29rIElQTyBncm93cywgbGF3c3VpdHMgbW91bnQEY2NvZGUDcHpidWFsbGNhaDUEY3BvcwM0BGcDaWQtMjI5ODE5MwRpbnRsA3VzBG1jb2RlA3B6YnVhbGxjYWg1BG1wb3MDMgRwa2d0AzIEcG9zAzEEc2VjA3RkLW53cwRzbGsDdGl0bGUEdGVzdAM3MDEEd29lAzEyNzc1MTUw/SIG=13m95u44e/EXP=1337883677/**http%3A//finance.yahoo.com/blogs/breakout/fury-over-facebook-ipo-grows-lawsuits-mount-150039330.html
 
 
  Fury Over Facebook IPO Grows, Lawsuits MountBy Matt Nesto | Breakout – 3 hours ago      Click to Follow Us on Facebook!
So now it's day four in the life of "public Facebook" (FB), and setting aside for a moment some gyrations in the stock price, it's safe to say things are still going to pretty much suck for the social media titan—at least for the foreseeable future. Only a week ago Mark Zuckerberg and the company he founded seemed to be draped in teflon and en route to world domination, whereas today kevlar might be a more suitable garment as an angry mob grows on their doorstep.
"They've done a lot of reputational damage to their brand, and that matters," says my co-host Jeff Macke in the attached video. He argues that the Silicon Valley company, renowned for its "thumbs-up and chums and we're all friends," has alienated its fans in a big way.
At the same time, with lawsuits literally mounting by the hour, it seems anyone within an arms reach of this deal is going to have some serious explaining to do. While shareholder suits are commonplace and often frivolous, the problem with this grievance is that it's grounded in populism, it's easy to understand, it will get wide mainstream coverage, and it's of interest to about one billion people.
As I write, shareholder suits have already been filed in New York and California. The State of Massachusetts has subpoenaed Morgan Stanley (MS), following reports that it allegedly only told a few of its best clients that its analyst was cutting his revenue outlook for the company. The entire underwriting syndicate --(GS), (JPM), (BAC), (BCS)-- is being sued, as is Facebook's newlywed CEO and several board members. In addition, the Nasdaq (NDAQ) has also been sued, and the SEC and FINRA are launching investigations. Congressional hearings and probes can't be far off.
This is not how it was supposed to go. The long-awaited debut was supposed to be the fairytale ending (or beginning) to the great growth story of the modern era. Instead, it has become just one big mess that's not only an embarrassment to all parties involved, but a huge distraction to business when it is supposed to be focusing on ways to grow its revenue.
What a mess.
Do you think Facebook (FB) will end this year above or below its IPO price of $38 a share? Please answer our poll question below and visit us on Facebook!

[SHOOTALL]

so you try to sell people a stock that's worth is based on advertisers not bricks and mortor.

[Graybeard]

Who cares? Not me, never been to the site don't figure I ever will go to the site.

[scootrd]

And wall street wonder why John Q public thinks the game is rigged for a few insiders.  Wall street operates like a Vegas casino with no oversight or regulation.  But hey Morgan Stanley and a few big insiders made 100 million in profit (factual number not bloating). So what the hell. screw the public investor.

 In one of the lawsuits, filed shareholders charged that analysts at Facebook’s underwriters lowered their financial forecasts for big, favored clients, yet didn’t inform the investing public at large. (unequivocally illegal)
 
 Read more: http://business.time.com/2012/05/23/facebook-wall-street-banks-sued-over-pre-ipo-financial-forecasts/?xid=gonewsedit#ixzz1viXroLSx
 
 But hey lets keep pushing for even more wall street deregulation and less transparency.
 

[Ron T.]

There was no big surprise here to me... they weren't selling a customer-based business with paying customers who spent lotsa money buying a solid product from FaceBook.  An idea was being SOLD with the ONLY asset being advertisers paying for the right to post their ads in the faces of anyone using the facilities... and eventually, a good many "stockholders" finally figured out they'd paid for AIR if the advertisers suddenly pulled out and quit putting their ads in FaceBook.

As to whether the stock will rise in value is anyone's guess... it might... or it might NOT, but one thing is for sure: TIME WILL TELL!

Perceived value isn't rocket-science... it's simply a matter of applying LOGIC to the "situation"!


Strength & Honor...

Ron T.