Mark Suckerberg sued by shareholders over IPO
 

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Facebook founder Mark Zuckerberg has been sued by the social media network's shareholders over its disastrous IPO.

By Telegraph staff2:25PM BST 23 May 2012
The lawsuit accuses Mr Zuckerberg, Facebook and several banks led by Morgan Stanley of hiding the company's weakened growth forecasts ahead of its $16bn initial public offering.
The defendants are claimed to have concealed from investors during the IPO marketing process "a severe and pronounced reduction" in Facebook revenue growth forecasts.
The news comes as Morgan Stanley, the bank in charge of the IPO, is being investigated over possible securites fraud.
The US bank has been accused of failing to warn smaller investors of a more negative assessment of Facebook's future profits.
It is claimed that several major investors had been pre-warned that a Morgan Stanley analyst had cut the amount of money he expected Facebook to make.

It is not just one law suit, but several.

If you bought FB, YOU GOT ZUCKED! Zuckahhhhhhhssss!!

so corny, but I loled :1orglaugh:1orglaugh

The stock market is gambling. You can't sue a casino because you lost at roulette. They should go try working for their money. Fuck em.

Whoever put a penny into this nonsense deserves what they get. :2 cents:

Now.. just wait for the rick rolled links to be posted..

Ohhh so they buy stock in a very risky IPO (that everyone warned about that it has a lot of risk and it's not smart to buy) in the hope to make some quick bucks, and now that it turned out to be not as they had hoped for they sue?

Let's go the casino and put $100,000 on black and if we lose we just sue the casino...

Is it normal to sue the CEO for a dodgy IPO, or is it merely symbolic?

The issue is more what info was and was not made available to all investors, no? Everyone knows it's a risk.

facebook didnt do anything illegal... until a company goes public it is not required to report shit. the underwriters were not even breaking any laws by telling just a selective group of investors about the forecast revision. before the stock goes public there is a roadshow, and this by definition is selectively choosing certain investors to give information to.

where laws were probably broken is if the clients of the underwriters that learned about the revisions adjusted their orders for facebook stock on day 1. that is almost certainly insider trading... but facebook did nothing wrong legally (ethically is a different story)

at least thats how i understand the situation to be

not a big surprise :2 cents::2 cents:

would they be sueing him if they made too much money

You can sue the casino if they rig the wheel.

:1orglaugh:1orglaugh:1orglaugh