Not peace at any price, but war


At least four law suits have been filed as of Wednesday, including one suit by a Maryland investor alleging that Nasdaq OMX Group “badly mishandled” the IPO such that trades were delayed and orders couldn’t be canceled. […]

For example, according to his complaint, Goldberg himself tried to make a series of limit buy orders via an online account. When the trades failed to execute, he tried to cancel them. His cancellation orders were reflected as pending for much of the day, and one trade, to purchase Facebook shares at $41.23, was executed three hours after the order was made, when the stock’s price had dropped to around $38. […]

Meanwhile, three other suits have been lodged against Facebook and numerous financial service firms who underwrote or otherwise took part in the IPO.

For example, Lieff Cabraser Heimann & Bernstein, announced that it had filed a class action lawsuit on behalf of all persons and entities who purchased the securities of Facebook, Inc. in connection with its $16 billion initial public offering of common stock on May 18, 2012 (the “IPO”).

The action was brought against Facebook, some of its officers and directors, and the underwriters of the IPO for violations of the federal securities laws.

Meanwhile, Los Angeles law-firm Glancy Binkow & Goldberg LLP, filed its own class action lawsuit on behalf of investors. The complaint, captioned Lazar v. Facebook, Inc., et al., was filed today in the Superior Court for the State of California, County of San Mateo, on behalf of a class consisting of all persons or entities who purchased the securities of Facebook.. It alleges, among others, that the offering materials provided to potential investors were negligently prepared and failed to disclose material information about Facebook’s business, operations and prospects, in violation of federal securities laws.

{ Securities Technology Monitor | Continue reading }

Fri May 18, 2012 11:44am EDT

“A 15 to 20 percent pop is in the realm of possibility,” said Tim Loughran, a finance professor at the University of Notre Dame, before the start of trade. […]

Some expect shares could rise 30 percent or more on Friday, despite ongoing concerns about Facebook’s long-term money-making potential. An average of Morningstar analyst estimates put the closing price for Facebook shares on Friday at $50.

{ Reuters | Continue reading }

related { Morgan Stanley told brokers on Wednesday it is reviewing every Facebook Inc trade and will make price adjustments for retail customers who paid too much }

photo { Joel Barhamand }