As if having your stock tank wasn’t bad enough, Facebook and its banks are now facing lawsuits from disgruntled shareholders. The suit claims that Facebook hid weakened revenue growth forecasts from the general public while alerting a select group of investors ahead of its IPO. Andrew Noyes, a Facebook spokesman, said: “We believe the lawsuit is without merit and will defend ourselves vigorously.” Morgan Stanley had no comment about the lawsuit, but previously said that Facebook IPO procedures complied with all applicable regulations and were the same as in any initial offering. No matter how you look at it, this is not great news for Facebook or any other tech company looking to go public in the near future. NASDAQ already apologized for a series of technical glitches that had a negative impact on Facebook’s IPO, this lawsuit – one of many that are being filed – just adds insult to injury. What’s next for Facebook? Redesigning profile pages of course.
Shelly Palmer Radio Report – May 24, 2012
Author: Shelly Palmer
Shelly Palmer is Fox 5 New York's On-air Tech Expert (WNYW-TV) and the host of Fox Television's monthly show Shelly Palmer Digital Living. He also hosts United Stations Radio Network's, Shelly Palmer Digital Living Daily, a daily syndicated radio report that features insightful commentary and a unique insiders take on the biggest stories in technology, media, and entertainment. He is Managing Director of Advanced Media Ventures Group, LLC an industry-leading advisory and business development firm and a member of the Executive Committee of the National Academy of Television Arts & Sciences (the organization that bestows the coveted Emmy® Awards).