Also in this playlist...
This transcript is automatically generated
About some of the big investment firms involved in the botched FaceBook IPO now claim they have lost more than a hundred million dollars in that mess and it comes.
As NASDAQ is still trying to fix problems with customers stock orders.
Here's a look at how FaceBook is doing now it's down about being -- a dollar 53 which means from the original stock price that's more than six dollars and fifty cents lower.
That means billions of dollars to investors.
You may remember Facebook's big debut on NASDAQ was delayed after exchange officials reported computer problems but that wasn't the only issue.
FaceBook now facing lawsuits claiming the company and its underwriters.
Misled investors -- told only a few select clients.
That the social networks earnings outlook.
Now we're hearing the plaintiffs in those lawsuits are seeking class action status.
Let's bring in the lawyers former prosecutor Jeffrey Stein and order and criminal defense attorney -- -- and Randy -- Is that the question here is pretty simple look if the big investors got information.
Of that Facebook's financial status wasn't as great as -- supposed to be and a little investors didn't that's illegal well it's very.
Interesting Trace that you say.
Didn't get as much was -- great because initially the story the way it was broken was that nobody knew anything except -- certain select people in other words.
The way this story broke it was okay certain insiders knew that the revenues were going to come up short and the analysts were going to downgrade.
And everybody else knew nothing now all of a sudden were being told wait a second.
The information wasn't enough to what the substantial enough so the story is changing moment by moment at what point do we not let people shoot and and then draw a target over what's going on that's not the way we do cases it's not the way cases should be prosecuted it's wrong.
-- were the case -- that you know the big investors got the information because the big investors did their homework.
And the little investors were just trying to jump on the bandwagon jumping to the glamour and didn't really investigate is as fully as they should have because the bank said the information was out there.
-- tries to look the shades of -- was twins they are smiling.
This is the number one IPO.
In the world on the planet and is -- going to be the number one class action on the planet.
Did you think that Zuckerberg.
The most creative -- exact.
On his words today would have not.
Drive the most effective job in bringing out.
A scorpion gently of the scorpions frogs Orbitz Fareed raised the scorpion never changed this with the bank's big day.
All the way down the line Zuckerberg know it.
GM tried to tell the people about it nobody -- -- -- told they'll -- in that ten million dollars found him and nobody took turns chaotic.
Nobody -- what was going on FaceBook was so well I saw in the manipulated so throughout the stock at that -- -- bought just -- -- I just think educational under and I pray.
Hold on Jimmie just gets you wondering it was that the -- gave the scorpion right across the -- and scorpion -- -- frog anyway and said just who I am so the story well be the bottom I get tired idea Randy is somebody's gonna get sued in this thing and somebody -- gonna get money back it looks like some of the small guys the big guys get money back.
Now the lawyers are gonna get the money that is the hallmark I -- I.
Why is that I -- -- -- on the big guys that didn't get the money the lawyers gonna get small class act.
And they will get the money but the big guys got the money and I initials I B -- -- eleven pro spotted out with a bank or investment.
Last -- -- heads I win tails you lose it doesn't work the market is -- gamble you -- wind make money you could lose money is no sure thing.
This never should be telling -- he -- -- in the bay isn't -- 50000 -- I want my money back.
Jeffrey Steinberg -- -- thank you both.
Filter by section