Facebook Suit n Such

Mark Zuckerberg

It's all over the news, twitter, even Facebook. The hype surrounding the IPO has quickly turned to rubble as shareholders are now suing Facebook banks over a botched IPO. 

I heard rumors that at the closing of the IPO on day one Facebook banks were buying stock in order to save the company from "embarrassment". HOWEVER... who would think that a bank would lie? I mean really especially over money? Duh, this isn't a surprise is it? 

Reuters recently reported that shareholders have filed a lawsuit early this morning in a Manhattan Federal Court. In a nutshell the suit is over Facebook hiding or "concealing" weak growth forecasts and reports in turn leading to shareholders obviously paying too much for shares on opening day. A last minute decision by the Facebook CEO deciding to increase the amount of stock offered by 25% was a blunder. 

Mark Zuckerberg himself is also accused in this suit. Here's my personal opinion. Do you remember the movie Social Network? In the movie there's a seen where Sean Parker (napster) tells Mark Zuckerberg the following statement. "Making a million dollars is alright, but making a billion dollars..." I think once Mark himself realized the wealth and value of Facebook that number simply changed by a couple zero's. I heard well before the offering that Mark wanted the company to offer at a value of over one hundred billion dollars. When the initial offering was going to be made Mark noticing that the value was more like seventy or eighty billion simply pushed the banks and his own CEO to make that nice crisp looking number of $100,000,000,000 (this is just a hunch). 

From a personal standpoint and from reading many and I do mean "many" articles about the Facebook IPO. I believe the future growth potential and investment opportunities with Facebook are great. We all know it's only going to get better from here, at least for the next few years. And if Facebook can penetrate the Asian markets and figure out search traffic this is a company that can surpass Apple and be worth over five hundred billion dollars pretty easily. So far however... They are off to a bit of a bad start.