New Facebook shareholders file class action lawsuit

In the wake of the poor and technically troubled launch of Facebook's IPO, the company and its lead underwriter Morgan Stanley are now the subject of a new class action lawsuit. Business Insider reports that a group of Facebook shareholders filed the lawsuit today. They are claiming that the company lowered its financial estimates in the middle of its IPO "road tour", before the stock launched on Friday.

The lawsuit claims that Facebook only told the large institutional investors about its lowered financial expectations during the "road show", leaving all the other interested Facebook stock buyers without that knowledge. Because that information was not put into Facebook's prospectus, the lawsuit claims it "contained untrue statements of material facts."

Reuters reports that a Facebook representative said of this new legal battle, "We believe the lawsuit is without merit and will defend ourselves vigorously". Morgan Stanley declined to comment.

Meanwhile, Facebook's stock price may finally have hit a bottom, at least temporarily. After two straight days of large declines in its price that totaled around 20 percent, the stock price is up over 2 percent as of this writing on the NASDAQ stock market.

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sava700 said,
I hope they sue every dime out of facebook till it shuts down.

Thank you for wishing to make the lives of millions of people worse. Facebook is a product that aids many people and businesses. Of course, you could just not use it and ignore it, but instead you wish to unnecessarily disadvantage other people.

sava700 said,
I hope they sue every dime out of facebook till it shuts down.

Yea, because it's totally impossible for anyone to actually like Facebook right? Get Real.

Calum said,

Thank you for wishing to make the lives of millions of people worse. Facebook is a product that aids many people and businesses. Of course, you could just not use it and ignore it, but instead you wish to unnecessarily disadvantage other people.

People and businesses got along just fine without it before it came along. Look at the facts of negativity around it which far exceed the pro's. I wish something that calls itself "Social" to disappear and let people get back to being really social once more.

SharpGreen said,

Yea, because it's totally impossible for anyone to actually like Facebook right? Get Real.

Lolz yeah I'm sure the stupid site has its own "LIKE" button for the blind followers.

Calum said,

Thank you for wishing to make the lives of millions of people worse. Facebook is a product that aids many people and businesses. Of course, you could just not use it and ignore it, but instead you wish to unnecessarily disadvantage other people.


Not sure WTF you're talking about, ALL FB is is so that egotistical people can tell the world about the crap they just took, it's one big ego trip wrapped in the sheen of "social" contact, nothing getting off your but going out or making a phone call can't fix and be actually good for you

z0phi3l said,


Not sure WTF you're talking about, ALL FB is is so that egotistical people can tell the world about the crap they just took, it's one big ego trip wrapped in the sheen of "social" contact, nothing getting off your but going out or making a phone call can't fix and be actually good for you


You must not be aware of how much money certain businesses have made from leveraging Facebook, then. The employees of Zynga, especially their founder, would very much disagree with your views about Facebook as would many other people.

You may not find it useful, as is clear from your comment, but you don't speak for everyone. Many of us understand how Facebook can benefit our lives and the lives of others

I completely agree, I resisted having a FB account for years until I buckled under the weight of peer pressure. It breeds mostly false and irrelevant 'friendships', makes people more and more shallow which corresponds to people actually being less happy I believe in their relationships. I honestly believe people who have literally 100s of contacts are extremely lonely and insecure people deep inside. The 100s they have on their list is an expression to satisfy not feeling lonely.

The human brain can't build links to more than 100-150 people if i remember correctly, building strong links is far less even, so having 100s on your friend list is a tad pointless - YOU DON'T KNOW THESE PEOPLE!

There was a time when people actually spoke face to face and did the novel thing of meeting up with friends and those they are close to and speaking with their body language. Now that's all people are interested in it seems is posting images of them selves sun bathing, being drunk, partying or doing other pointless things and thinking they look cool. It's all "hey look at me" ego driven nonsense, I couldn't give a crap about it. I know who my mates are and don't need to 'stay in touch' with them with the aid of facebook.

Facebook is exactly the kind of crap that I thought it to be before getting an account. A bunch of people many who you don't want on your 'friend' list because they are NOT your friends (lets be honest here) but social convention and etiquette dictates they need to be there, whether they be work colleagues or other acquaintances. I'm literally close to removing my account, I have zero interest. I'm not an old fart either im 26.

I'm not saying I hate facebook but it appears that it's becoming the default way of building relationships and that's very dangerous in my mind as its all false and lacking substance. The bottom line is this, facebook is nothing more than an address book in a clever skin. You would have to be bonkers to invest in it under its current business model and frankly i don't trust how it's run either. Facebook floating always seemed odd to me anyway, I'm not surprised they're in hot water now.

sava700 said,

People and businesses got along just fine without it before it came along. Look at the facts of negativity around it which far exceed the pro's. I wish something that calls itself "Social" to disappear and let people get back to being really social once more.

Many, many businesses have made much more money than they would have without Facebook, due to the Pages product and other factors related to business presence on Facebook (e.g. check-ins to Places). That is an indisputable fact. Word of mouth can be one of the best forms of promotion, and Facebook gets that word around to a much broader audience than most people can without Facebook.

Dorza said,

Facebook is exactly the kind of crap that I thought it to be before getting an account. A bunch of people many who you don't want on your 'friend' list because they are NOT your friends (lets be honest here) but social convention and etiquette dictates they need to be there, whether they be work colleagues or other acquaintances. I'm literally close to removing my account, I have zero interest. I'm not an old fart either im 26.

Every tool is only as good as how you use it... Sure it is probably better in keeping in touch with loose acquaintances, and sure people don't really actively have more than 100-150 stronger friendships but it is great at maintaining ties and not as a medium to hangout with your friends.

i think it's great in terms of keeping in contact with true friends who are overseas and using it as a tool to meet up in person whenever you are in the same city.

z0phi3l said,


Not sure WTF you're talking about, ALL FB is is so that egotistical people can tell the world about the crap they just took, it's one big ego trip wrapped in the sheen of "social" contact, nothing getting off your but going out or making a phone call can't fix and be actually good for you

Yes how dare I use it to keep track of my friends in Afghanistan and the Falkland Islands, or see how old school friends and family members are doing. It's so Ego-tystical.

sava700 said,

People and businesses got along just fine without it before it came along. Look at the facts of negativity around it which far exceed the pro's. I wish something that calls itself "Social" to disappear and let people get back to being really social once more.

Oh sure, just like they were fine before electricity, cars, phones and internet came along. People stopped being social in person a long time ago, but Facebook and other social tools are changing that and will continue to do so.

Just because you have no distant family, no good photos to share, no business to run, no parties to organize, and nobody to like your pointless status updates, doesn't mean everyone else is the same.

If you don't like it, don't use it. Don't chastise others simply because they like it.

Peely said,
Google must figuratively be rolling about laughing right about now.

After a good laugh reality kicked in.... Google Plus. Now they are sad.

I wonder how many will now think for real that Mack Zuckerberg is actually just a child with a hoodie and luck. lol

It looks like a very well orchestrated financial coup to make a few very rich and millions of FB investors very poor...

Who actually thought the stock would have went up? If you had the chance to buy the stock before the public then dump it for profit seems like no brainer to me. I don't know a lot about the market but knew enough to stay away from this one. The value of the company is based on cyberspace! GM stock did the same thing(over valued). They are only making an issue of this because it's facebook..... ya think?

To the facebook haters, yes facebook in theory is stupid, but your also jealous you didn't come up with this "stupid" idea that EVERYONE embraced. Like it or not, know how to use it or not, it's there and being used. It's great, annoying, ridiculous and for some time consuming all wrapped in one. Like windows, love to hate it LOL


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