Lawyers Prep Class Action Lawsuits Filed Against Facebook

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santeana

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Apr 18, 2003
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This is just stupid. These people bought all these shares at ridiculous prices in the first place, especially seeing as how facebook has no intrinsic value whatsoever! It's worth so much money simply because someone decided it is! Apple is seriously overpriced too, but they actually MAKE A PRODUCT! They have a tangible product that sells and makes them money! Facebook has nothing of the sort. And now all these people are suffering from buyer's remorse and want their money refunded. It's their own fault for not doing a bit of homework before they bought the shares!
 

santeana

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Not really. They only made about $1.9billion in 2010. Considering that there are over 500 million users on FB, it's not that much money. Yet FB for some strange reason is valued at $100 billion? No thanks.
 

smitty10

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[citation][nom]santeana[/nom]This is just stupid. These people bought all these shares at ridiculous prices in the first place, especially seeing as how facebook has no intrinsic value whatsoever! It's worth so much money simply because someone decided it is! Apple is seriously overpriced too, but they actually MAKE A PRODUCT! They have a tangible product that sells and makes them money! Facebook has nothing of the sort. And now all these people are suffering from buyer's remorse and want their money refunded. It's their own fault for not doing a bit of homework before they bought the shares![/citation]

There are a ton of companies that don't sell tangible products. Have you never heard of the service industry?
 

Vettedude

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[citation][nom]stingstang[/nom]Facebook has the greatest site for ad revenue in the world by about 1 million times. Tell me that's not worth anything.[/citation]
Google. Facebook ads have a horrendously low click rate.
 

willard

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[citation][nom]santeana[/nom]This is just stupid. These people bought all these shares at ridiculous prices in the first place, especially seeing as how facebook has no intrinsic value whatsoever! It's worth so much money simply because someone decided it is! Apple is seriously overpriced too, but they actually MAKE A PRODUCT! They have a tangible product that sells and makes them money! Facebook has nothing of the sort. And now all these people are suffering from buyer's remorse and want their money refunded. It's their own fault for not doing a bit of homework before they bought the shares![/citation]
Could you be more clueless?

The investors did do their homework. The lawsuit is about those publishing the figures intentionally misleading investors to inflate the value.
 

muy

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oh my, someone went to vegas and lost money in a slot machine and made a lawsuit because he didn't increase his starting capital.

people should be fined for making stupid cases in court ! america looks worse than a banana republic at times tbh. (did i mention it's scary to see idiots ruling banana republics flaunting nuclear weapons ?)

 

thisisaname

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[citation][nom]stingstang[/nom]Facebook has the greatest site for ad revenue in the world by about 1 million times. Tell me that's not worth anything.[/citation]

and how many of them run adblock and thus rather than being worth anything cost money?
 

doive1231

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The underwriters & Facebook have a duty based on the facts to value a company and therefore the IPO shares at a fair price. Seems from the drop that they didn't do this so they could be in trouble.
 
G

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ok. how to became a millionaire by investing money in facebook. you have to spent a billion.
 
G

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People need to take personal responsibility for their investments or at the very least blame the financial advisor whom they pay to give sound advice. What is happening with the Facebook IPO is that the late to the game speculators have not had flash profits and are now throwing their toys out their prams.

If I were to invest in Facebook I would have ensured I was confident that a P/E ratio of 100/1 reflected that this priced in future growth was actually viable. Personally I felt that they were a $10 share so stayed well clear but if I had bought then it would have been my own fault.

Furthermore the profit warning was days before the IPO which should have been enough to allow any potential investor time to withdraw. This will be a key consideration in any legal defence.
 

Cy-Kill

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[citation][nom]conh[/nom]Furthermore the profit warning was days before the IPO which should have been enough to allow any potential investor time to withdraw.[/citation]

The 'warning' was only given to certain investors, and not to the general public, hence why it seems like insider trading.
 

pinkeyes

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Proofread your goddamn article before publishing it. This is the most poorly written piece I've ever seen on Tom's.
 
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