Investors File Lawsuit Against Facebook Over IPO

At least three lawsuits have been filed over Facebook’s initial public offering, including one in the Southern District of New York on behalf of three purchasers of Facebook common stock. The suit alleges that Facebook’s SEC filings prior to going public included “untrue statements of material fact,” chiefly regarding the company’s admission that its ability to monetize mobile users remains a challenge.

The defendants named in the suit include Facebook executives Mark Zuckerberg, CFO David Ebersman and Chief Accounting Officer David Spillane; board members Marc Andreessen, Erskine Bowles, Jim Breyer, Donald Graham, Reed Hastings and Peter Thiel; and underwriters Morgan Stanley, JPMorgan Chase, Goldman Sachs, Merrill Lynch and Barclays Capital.


The suit relies on reporting from Reuters, which discovered that underwriters including Morgan Stanley lowered their estimates on the social network’s revenue growth during the roadshow. Morgan Stanley has said that it followed its standard operating procedure for IPOs with Facebook.

Shares of Facebook managed a slim gain from the IPO price of $38 when they debuted Friday, but then spent the next two sessions in free-fall. The stock finally righted itself Wednesday, climbing 4.5% to $32.40.

A separate lawsuit brought against Nasdaq OMX Group, alleges negligence on the part of the stock exchange operator, which delayed the initial trading in Facebook on Friday due to technical issues and then struggled to send execution confirmations notifying customers of completed trades for several hours.

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Source: Forbes

Image: NY Daily News

Pakistani Actress Poses Nude, Stirs Fury

Veena Malik’s photo on the website of FHM India, in advance of its publication in the magazine’s December issue, has been lighting up social network websites since earlier this week.

Many here anticipate a backlash, as nationalists and Islamists regularly stage rallies against anything they deem an insult to Islam or to the national honor. India and Pakistan have fought three wars, and the Inter-Services Intelligence agency or ISI has been accused of sponsoring terrorist attacks inside India.

Malik has broken Pakistani religious and national taboos in the past. She is a target for conservative ire and a heroine to some Pakistani liberals. Conservative cleric Maulana Abdul Qawi declared on Aaj TV on Saturday that her latest venture into controversy was a “shame for all Muslims.”

In an interview with Pakistani Geo television broadcast Saturday, however, Malik said the nude photo was published in violation of her agreement with FHM India and she was considering legal action against the magazine. Malik acknowledged having been photographed for a “bold but not nude shot.” She said the editor of the magazine had promised that he would cover most of the photo with the ISI initials. The photo was intended to poke fun at the Indian fear of Pakistani spies, she said, adding “whatever happens (in India), people say ISI is behind that.”

Malik does most of her work in India. The entertainment sector there is booming, while Pakistan’s is moribund. Her ties to Pakistan’s archrival have landed her in controversy in the past.

 

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