Class Action suit against Zuckerberg

[Al K. Hall]

http://www.tmz.com/2012/06/04/facebo...ng/?adid=hero1

Mark Zuckerberg Sued
Sold a Billion $$$
Before FB Disaster

A new lawsuit claims Mark Zuckerberg pulled a billion dollar fast one on Facebook investors.

The class action lawsuit -- filed by disgruntled Facebook shareholders -- claims the 28-year-old CEO had inside info that the stock was grossly overvalued, and he protected his own financial hide by quickly unloading a ton of Facebook stock.

This is the second time in two weeks a group of FB shareholders have joined together to accuse the mogul of withholding information.

The lawsuit claims Zuckerberg and his cronies hid the fact that there was a foundational flaw in the Facebook business model -- that there was not nearly enough advertising revenue to support a stock valued at $38 a share.

The lawsuit claims Morgan Stanley, JPMorgan, and Goldman Sachs -- all sounded the alarm before the IPO that Facebook was seriously overvalued, but that information was "selectively disclosed" to the largest investors.

Then again, hasn't Mark suffered enough. He's only worth around $15 billion.

[andial]

the 28-year-old CEO had inside info that the stock was grossly overvalued,

Inside info? Anyone who couldn't see with their own two eyes that it was overvalued deserves to lose any monies invested. IMHO

[Sindgefallen]

Inside info? Anyone who couldn't see with their own two eyes that it was overvalued deserves to lose any monies invested. IMHO

Precisely!

They only make 31 cents a share! A fair value is more like 3-5$.

NOT 38 or frickin 45 for that matter. It was priced at a bubble P/E from the get go and I cannot believe that those gullible dupes really thought there was more money earned by FB somewhere else because that is a load of hopium excrement.

[jogslvr]

FaceBook is a prime example of what the new American Capitalism is famous for producing these days - pure worthless bullsh!t. The day of IPO, I predicted this stock would hit $18 within 6 months. I think I grossly underestimated the downside.

[gringott]

Zuckerberg was chatting with an unnamed friend, apparently in early 2004. Business Insider, which has a series of quite juicy anecdotes about Facebook's early days, takes the credit for this one.

The exchange apparently ran like this:

Zuck: Yeah so if you ever need info about anyone at Harvard

Zuck: Just ask.

Zuck: I have over 4,000 emails, pictures, addresses, SNS

[Redacted Friend's Name]: What? How'd you manage that one?

Zuck: People just submitted it.

Zuck: I don't know why.

Zuck: They "trust me"

Zuck: Dumb f*cks

[budfox]

Zuck did nothing wrong, however he may want to get a vest and a couple of goons when he's out in public from now on.

[Goldhedge]

All Zuck did was offer an IPO, the media played right into it by making it the 'recovery' vehicle of the decade... Then they offered 25% more shares than planned and the rest is hysterical...

[budfox]

All Zuck did was offer an IPO, the media played right into it by making it the 'recovery' vehicle of the decade... Then they offered 25% more shares than planned and the rest is hysterical...

Yep, the good thing is a lot of people got some school housin at the rough end of the pineapple.

[Silver Art]

Hmmmm........Let me see if I have this correct here. The first "get rich quick scheme" of buying the FB stock IPO and riding it up did not work since it went from a very brief high of $45 down to the current $26.90/share price. Sooooooooooo since that first "get rich quick" scheme did not work, then the "investors" are trying the 2nd "get rich quick" scheme of suing Zuckerberg. Yep only in America.

Rule # 1: Facebook stock is a DOG.

Rule # 2: Remember rule # 1.

The gamblers (i.e. FB stock buyers) took a chance on the DOG and lost (down 29% from the IPO price so far) and now they are crying foul (i.e. suing Zuckerberg). And the winner of the lawsuit will be.......................THE LAWYERS!!!!!!!!! Should I feel sorry for the gamblers blowing their money on this Wall Street crap shot? NO!!!!!!! The gambler placed a bet on a rigged game and lost. It's as simple as that to me as far as I am concerned.

[budfox]

Hmmmm........Let me see if I have this correct here. The first "get rich quick scheme" of buying the FB stock IPO and riding it up did not work since it went from a very brief high of $45 down to the current $26.90/share price. Sooooooooooo since that first "get rich quick" scheme did not work, then the "investors" are trying the 2nd "get rich quick" scheme of suing Zuckerberg. Yep only in America.

Rule # 1: Facebook stock is a DOG.

Rule # 2: Remember rule # 1.

The gamblers (i.e. FB stock buyers) took a chance on the DOG and lost (down 29% from the IPO price so far) and now they are crying foul (i.e. suing Zuckerberg). And the winner of the lawsuit will be.......................THE LAWYERS!!!!!!!!! Should I feel sorry for the gamblers blowing their money on this Wall Street crap shot? NO!!!!!!! The gambler placed a bet on a rigged game and lost. It's as simple as that to me as far as I am concerned.

Quote;

Hey Buddy there is no insider trading.....you're either on the inside or the outside.