Shareholders sue over Facebook IPO
Legal panel debate case
- Duration 3:52
- Date May 24, 2012
Legal panel debate case
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Attorneys out Joey Jackson criminal defense attorney faith Jason Jenkins a former prosecutor gonna see -- don't you let me start you -- have a copy of the at least one of the class action lawsuits.
And it essentially claims this is the fourteen page one.
It essentially claims that the investment bankers the underwriters that is.
They had information that was negative about FaceBook a negative revenue outlook.
That they shared with some special clients but not everybody else and -- the claim is the little guy got ripped off.
On what do you think black so now now -- the way it works is this way Greg if you're gong to do an IPO an initial public offering in FaceBook of course having filed registration statements and having -- perspective.
Prospectus which indicates what -- company's about him what the revenue -- -- He just -- a level playing field for every one in this agility and an obligation on all parties to disclose -- -- investors have a right to invest in anything we want why not invest but at a minimum you wanna ensure that the playing -- is even -- if we want to give our money to something that we should get accurate reliable information which is fact specific in this case if it didn't happen which is a factual question.
Those accountable need to be held responsible now -- Bob what's interesting about the class action lawsuit all all of the factual allegations are based on.
Newspaper report so we don't really know the truth of the allegations that'll be subject to what's called discovery but what's your impression.
My impression is that based on the documents investors in this case should have known that there were significant problems and here's the -- FaceBook reported on April 23 biggest growth -- stalled.
All the information at Morgan Stanley means to revised their forecast this with information they every wind should have known it was out there to the public.
But in General Motors it pulled its advertising.
-- FaceBook and FaceBook reported that they had a significant decrease and advertisers.
Everyone knew that there were all of these problems out there and guess what if the stock market it's not a short scene every time you you you invest there's a possibility that you lose money.
That doesn't mean that you have a right to file a lawsuit -- that -- -- some kind of -- involved -- because you lose not.
You know -- Joey in terms of trades this was the biggest IPO -- which means if this thing gets certified by a judge as a class action.
My goodness this could be the biggest lawsuit in history both in terms of -- it's.
And damage you are absolutely well you're looking at 420 million shares that -- -- and you're talking about a 104 billion dollar company without question a loss to will be massive.
Faith raises excellent points those -- the -- -- that'll be litigated in court.
Was -- information available to the general public -- that individual investors could have found out themselves.
Or what things highlighted an otherwise you know secretive from public view is such that it was done in secret -- only the -- you were allowed to know about it that's the million dollar question -- but if this goes you know anywhere close to trial to be tied up for years now -- there could be a separate lawsuit against the NASDAQ for making faulty -- -- that would be based what on negligence and apparently they've already set aside.
Millions to try to compensate those.
Trades that weren't.
Right negligent in not doing their due diligence but again the bottom line is -- you can file these lawsuits and some people say they don't have a lot of -- the -- -- -- -- -- settlement -- And that's what you know I think a lot of people are counting on here he's playing its securities lawyers they look at the fact that you know that IPO didn't perform the way they thought people.
The way people thought -- -- -- these lawsuits are found based on what to age appropriate or else.
Half and the lawyers get rich you know.
Don't -- -- -- ordinary right away license to steal and -- I'll I'll I'll use it oddest way and use -- favorably for the public good.
-- Jerry Jackson paid Jenkins get -- -- about that.