Facebook set to file motion: Will blame NASDAQ for IPOcalpyse Facebook is planning to file a motion in the US to consolidate all its shareholder lawsuits and blame the NASDAQ stock market for its disappointing IPO. The social network is finally planning to address the 30 or so lawsuits that have been filed against it after the botched handling of its stocks' opening day and their …
traders and investors threw their money on a risky bet that they clearly had no great knowledge of, the price tanked, so now they're going to sue someone. it's a wonder people don't sue casinos when the roulette ball doesn't land on their number.
if the NASDAQ hadn't had the technical issues, the price would still be tanking, but perhaps it would have been a bit slower.
"Shareholders have graphically illustrated their frustration over the performance of what was the most-hyped stock of the last year or so, by filing a slew of lawsuits against Facebook itself, Mark Zuckerberg, other execs"
fools and money etc.
They have noone to blame but themselves. Buying stock in a company that has little growth potential, never mind having no product revenue short of virtual advertising. Seriously if you wanted to throw money in the air would you buy FB or intel shares (roughly the same price).
While it's hard to take much pitty on people who'd think they could get something for nothing, governments exist largely to protect people from themselves and each other, so Facebook, NASDAQ and the mafia underwriters shouldn't really be allowed to just walk away from this either.
Unfortunately punishing the crooks almost necessarily means providing some sort of compensation to their victims, so you end up, if not rewarding stupidity, then at least softening its effects...
That's right muppets. You made a bad investment decision, and lost a trunkful of money. But instead of learning and moving on you're now going to spend MORE money on lawyers trying to get back that which you wouldn't have lost had you understood WTF you were doing in the first place...
Losing money hurts, but really, that pain should be a lesson to the loser, not reflected onto whoever's last in the firing line. Anyone who knew anything could see Facebook was a massive lose-lose risk.
I do approve of the idea of being able to consolidate all your court cases into one, easy to manage, monthly court case. Could we have adverts on TV for this, perhaps with Carol Vorderman?
"Have you maimed a few thousand people by your negligence?"
"Oh dear."
"Being sued by a few hundred disgruntled former customers?"
"Oh well."
"Why not consolidate all those messy cases into one easy to manage one? Then you can get all the plaintiffs in one room, and our attack-lawyers will have them taken out and shot for you. No mess, no fuss, no inconvenient witnesses."
"We are Mafia Finance, and we're here to solve your problems. Mafia Finance. A family company."
>>After the collapse of the economy, I guess people thought that the Big Three couldn't possibly wrong again.
Actually, these banks haussed the FB stock to the sky, and then sold it off the first day. They do this routinely. Build up bubbles and sell off on top, and wait for the crash. Then they do the next bubble. They have done this for ages, and know exactly what they are doing. The only clowns are the people buying their talk, getting fooled. Poor them.
There was a very nice article on this, especially Goldman Sachs has done this routinely, build up bubbles. Lots of information on Real Estate bubble in USA, IT bubble, FB, etc etc etc. Very interesting. Goldman Sachs gets what they want. The only reason FB got so highly valued, is because these banks profit on a high valuation. If these banks did not profit, then the valuation would be sane.
Any fool knows that stock speculation is nothing more than the type of gambling where you are allowed to count cards. You could be a wizard at math, but if the house over inflates the cost of the chips, you still lose. And like everybody else, you walk away from the table.
Personally, I blame the idiot who cast the deciding vote on setting the "great idea" IPO price. Secondly, Yes, Facebook attracts a LOT of users, but is it's revenue model truely viable long term?
For every attempt to cram revenue generating advertising or collecting of user info, there's someone who's working on ways to hide or evade FB, thus causing twitchy advertisers to become shy. Besides, web 2.1 is just around the corner.
WSJ
By JACOB BUNGE
"Nasdaq OMX Group Inc. NDAQ +0.93% is sending a message to firms weighing lawsuits related to trading losses in Facebook's FB +4.65% initial public offering: Winning won't be easy.
Nasdaq is sending a message to firms weighing lawsuits related to trading losses in Facebook's initial public offering: winning won't be easy.
The exchange operator believes it is protected by its contracts with members and by its unusual legal status, which is rooted in its dual role as a regulatory body as well as a business that makes money running markets. Exchange officials in recent weeks have pointed out to analysts that Nasdaq has never been successfully sued over a trading error.
"When you look at member agreements that people sign, it's quite explicit that they're bound by that accommodation policy," Robert Greifeld, Nasdaq's chief executive, said last week at a Sandler O'Neill + Partners conference, referring to legal agreements capping the exchange's payouts linked to system problems.
Legal experts agree that the exchange has a strong defense, but note that it isn't ironclad."
http://online.wsj.com/article/SB10001424052702303444204577462572896093912.html
This ought to take longer than the Apple/Proview suit. All of America will be divided into 2 camps: the Nasdaqards and the anti-Nasdaqards. Fights will break out in restaurants. Family members will stop talking to each other. Finally all of Wall Street will be devoured by the cost of legal proceedings.
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