Dealbreaker’s Matt Levine writes: It did not take long for
plaintiffs’ lawyers to realize that there was good money to be made by
complaining about the Facebook IPO – there are at least two class actions
against the company and underwriters so far, not to mention other class-action
lawsuits against NASDAQ for screwing up trades.
The securities-fraud lawsuits are the bigger tickets; the
one filed in New York today claims $2.5bn in losses though I guess that number
is down slightly today. The legal theory here is that Facebook lied in its
prospectus, which would entitle buyers in the IPO to “rescission,” that is, to
the right to hand their shares back to Facebook in exchange for the price they
paid for them….
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