Posted in: Social Media

Mark Zuckerberg Sued For Unloading Facebook Stock Before Price Collapse

Mark Zuckerberg Sued For Insider Trading

Troubles at Facebook continue this time as a new lawsuit has been filed in which Facebook investors claim Mark Zuckerberg sold more than $1 billion worth of the social networks stock just before prices started tumbling.

The class action lawsuit was filed by disgruntled Facebook shareholders who claim that the 28-year-old CEO and mega-billionaire knew the stock was grossly overvalued, at which point Zuckerberg unloaded his own shares to avoid furthering his own massive losses.

At the heart of the lawsuit is the argument that Facebook knew there was not enough advertising revenue to support a $38 stock valuation but hid that revenue information in order to push up the share price for the social networks initial public offering.

The lawsuit also claims that Goldman Sachs, JPMorgan and Morgan Stanley all pointed out the foundational flaw in Facebook’s IPO but that the social network only bothered to share that information with its largest investors through “selective disclosure” methods.

If Zuckerberg used information at his disposal and shared that information only with select groups of investors he could be found guilty of insider trading, although specifics about those details are not yet known.

Mark Zuckerberg has not been in the clear since selling off his shares, he has lost more than 25% of his wealth, although it is hard to feel sorry for a guy who has $15 billion in the bank.

I stand behind my previous comments that anyone who was valuing Facebook at Net 40-50 years was insane.

Do you think Facebook stock is still overvalued given the company’s flaws in revenue reporting?

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Comments

145 Responses to “Mark Zuckerberg Sued For Unloading Facebook Stock Before Price Collapse”

  1. Ben Flores

    So what's the worst that will happen, he will be like Martha Stewart, spend a year in a minimum security facility and come out still rich….

  2. Michael Collins

    WOW! This author could not have screwed up this article anymore. Where the hell did you go to school? What's that? California Public Schools? Oh now I understand.

  3. Bryan Gilchrist

    Who checked this article before it went live? "…unloaded his own shared to avoid furthering how own massive losses."

  4. James Johnson

    It is probably more likely that Facebook would "own up" to "clerical errors" in reporting and take the heat and whatever fines are thrown its way. Stewart was thrown in jail after she engaged in trades outside of her own organization. Then again Zuckerberg could introduce "Jailbook.com" for the "connect prisoners in our lives." LOL.

  5. Granny Ren Faire

    the higher u climb the harder that efn concrete/pool is when u hit it….SPLAT….. >Ben…..u r right it will be a slap and then a yr maybe 2 at club fed and yes he'll still have his billions when he gets out…….whaaaaa I want his problems whaaaa….people with money never really pay for their crimes do they?

  6. William Johnson

    Anyone who thought Facebook stock was worth $38 was a fool, and fools and their money are soon parted.

  7. Scott Boyd

    condemning the man without a trial huh? Sounds like petty jealousy because he is smart and rich and you people aren't.

  8. Bobby LeQuia

    Oh really Mr. Boyd. To you being dishonest is being smart. If you think this then you belong in prison as well as Mr. Zuckerberg.

  9. Scott Boyd

    at least the suckers as you call them had the money to invest unlike some posters who just want to mouth off while they are waiting for their welfare check

  10. Kori Crawford

    I’m so disappointed… to think I nearly bought stock but didn’t due to my buddy Pete advising against it. Thanks Pete.

  11. Katie Brown

    Ummmm I am pretty sure this was all over the news BEFORE the stock went live… totally the fault of the greedy investors!

  12. Anonymous

    Facebook is losing steam at an alarming pace. It seems that the tweens do not want to be on facebook because their parents are. The existing users are losing interest everyday and then the list of people that just do not like Zuckerberg is growing. Mark and his bride not leaving a tip at 2 restaurants in Europe did not help.

  13. Dan Heary

    FLASH and fade….this is a laughing matter to people who now when and how to invest. FB doesn't even the smarts to have advertising [revolving clients] on its home page—and 900 million users open FB routinely…take your BLUE CHIP turtle and make $$$$.

  14. James Cahill

    Hey, Scott Boyd, do you work for the little worm? Aren't you just up there with those whose shit does not stink. If you think for one minute that Zuckerberg gives a rat's ass about anyone but himself, you are a bigger moron than he. The twins he stole this idea from have got to be laughing their asses off.

  15. Dan Wright

    Envy is one the seven deadly sins… If I were Zucherberg (which I don't care to be) I would say screw it, take my money that I earned honestly, and move to an lsland and just chill… lol

  16. Heather Bradley

    I hope a naked California zombie comes and chews your face off for being such a troll.

  17. Dan Heary

    @Boyd–people make a statement and you CLAIM they are "jealous"….the stocks IPO was OVER-RATED and the public hopped on a company past its prime and Zuck knew it….hahaha….are you an unemployed corporate lawyer looking for a job ?….hahaha

  18. Anonymous

    Stock is only worth $25 max but who knows it just may even go lower will wait and see what happens.

  19. Dan Mead

    Whatever Zuckerburg did or didn't do, the initial IPO price always seemed a bit inflated to me and I'm simply a news follower. If anyone lost more than they could afford to loose by purchasing this stock I believe it was because they were going for the quick buck rather than a sound investment.

  20. Marc Gregory Jensen

    Suing Zuckerberg because he made a smart business decision how could anyone think Facebook was worth that much when advertisers were pulling out and members have been declining. Anyone who has a computer could have found this out. Facebook was big but is now on the decline anyone with common sense should have seen it.

  21. Anonymous

    I'm sick of these crybabies I hope they all loose their asses! On second though… Maybe the millions who've.
    lost their homes should turn around sue the banks for giving them loans they knew they could never afford?

  22. Rosemary Pluchino

    Obviously Mr. Boyd you are very wealthy man that should HONESTLY shove some of that money in your mouth. You are being too loud !!!! on your opinion of the lower class society ! hope you share that bench and blanket someday !!!!!!!!

  23. Guillermo Tony Saddler

    Lol, the guy's name should be Suckerberg, they knew what kind of snake he was and how he "GOT" Facebook in the first place, serves them right!

  24. James Johnson

    Marc, the issue is that directly before the IPO Facebook noticed big revenue declines because users were jumping to its mobile platform but they did not amend those findings to their SEC notices, which in turn pushed down the overall valuation, information only certain company's are believed to have been given details about.

  25. Greg Winski

    No one told these Greedy Bastards to buy blocks of Facebook stock. They should have done their HOMEWORK. NEXT TIME……………………….HEED COMES BEFORE GREED. TAKE YOUR LOSES LIKE BIG BOYS AND DON'T CRY TO THE OBAMA ADMINISTRATION TO BAIL YOUR GREEDY ASSES OUT. WHY DO YOU THINK WARREN BUFFET DIDN'T PURCHASE ONE SHARE OF FACE BOOK,? BECAUSE HE DID HIS HOMEWORK AND MADE ALL YOU "SUCKERS" LICK YOUR WOUNDS.

  26. Randy R Felts

    Damn Scott,don't hold back,tell us how you really feel.

  27. Bobby LeQuia

    Morgan Stanley one of the underwriters for the Facebook IPO was dropping the value as this IPO transaction was in process. I am no lawyer but I would believe such a move to be illegal. As a Stock Trader/Investor I am glad I cancelled my Facebook IPO purchase order. As we say in the Stock Market; Buying a Stock like Facebook is like trying to catch a falling knife. Looks like Mr. Zuckerberg and others that invested in Facebook will bleed great drops of blood.

  28. Scott Boyd

    Oh really Mr LeQuia you know the truth and are privy to what happened more than anyone else. Are you psychic? If he was guilty he would be in jail. Morons like you condemn anything just on a feeling. Why don't you wait for the facts to come out and are proven instead of people who lost money on a gamble that want to blame the first person for their own ignorance. And how many of those seniors have you lied to about their benefits. I think you have many times so you should go to jail. There, as much proof as you have idiot.

  29. Scott Boyd

    Cahill You must be a member of Zuckerberg's closest friends for you to know for sure all what has happened and how he feels about people. it doesn't matter that he doesn't act like a billionaire. My house is bigger than his. Last I heard he has not been proven to steal anyones idea. You believe anything that you hear. Actually Apple was my idea, so now you should be pissed at Steven Jobs. Only problem he is dead and I cannot sue him but what I say is true so now you should be pissed at Apple. what a moron you are.. You are a jury member nightmare, already making up your mind without the facts. I guess Zuckerberg losings billions on this doesn't matter either. Moot point correct?

  30. Bobby LeQuia

    Mr. Boyd, a moron creep like you that is dishonest is support of Mr. Zuckerberg tells everyone of your character. What Mr. Zuckerberg did is all on the news reports that I see as an Investor. Yes, he deserves due process like everyone else. Now we all believe you were a part of the dishonest facebook deal. We all know of your lack of morals Mr. Boyd. Selling Medicare Insurance as an Insurance Broker to retirees is honest as the day is long. Quit being judgemental of things you know nothing about. Don't you dare judge me as as Insurance Professional. I don't lie to any retirees about Medicare Insurance. Insurance is highly regulated. My reputation is clean and from what your talk is several people believe you are a creep. You keep proving you are a creep over and over again. Morgan Stanley one of the underwriters for the Facebook IPO was dropping the value as this IPO transaction was in process. I am no lawyer but I would believe such a move to be illegal. As a Stock Trader/Investor I am glad I cancelled my Facebook IPO purchase order. As we say in the Stock Market; Buying a Stock like Facebook is like trying to catch a falling knife. Looks like Mr. Zuckerberg and others that invested in Facebook will bleed great drops of blood.

  31. Scott Boyd

    that is true Katie people always blame others for their mistakes case in point, the banking industry for putting people into mortgages they couldn't sfford. They make 20k and have a 300k mortgage. banks shouldn't have done it but come on people, use your brains and be responsible for yourselves you could have said no

  32. Tom Mcbride

    I would have released it at $20 a share and let the market drive it up. Mark's a good programer, but not so much business savvy. He should have kept it private, christ he already have $15B in bank how much more you want?

  33. Timothy Frederick

    If this was Bain Capital, this would be called normal business practice. So, what is the uproar about?

  34. Adam Hardaway

    Maybe if you all talked to a stock Broker like Mr. Boyd he would have told you not to waste your McDonalds paycheck on an overvalued IPO like Facebook.

  35. James Cahill

    Great, so you got a big house. Whoopdi-friggin-do. Don't know, nor care, that you made your millions for Apple precursors, but if you have ever spoken with a techie insider, and I am sure you have, then you would know what kind of prick the guy is. He ended up paying the two guys whose idea he stole for Facebook millions just so they would leave him alone. So, I would think that if something similar to that happened to you, you should be really pissed off and go for the throat. BTW get over yourself. You do not sound like a very happy individual.

  36. Prometey Bezkrilov

    At the end he'll be acquitted, don’t worry guys. After all he is from the “chosen tribe”; he is allowed to do anything. We’ll probably watch some Kabuki theatre on TV with Bernie Sanders asking some questions, and other tribesmen testifying against the “evil market forces”, but at the end he’ll walk away. The worst thing that may happen to him is a fine, or “a kick back” to be more appropriate. Then the media will drop it as a hot potato. Just watch. And don’t complain. Are we not supposed turn another check when we are slapped on the face?

  37. Melinda Ross

    whyis yahoo doing nothing about this lame spammer in the comments here?

  38. Woody Woodham

    Hey people, this is nothing new. This is how capitalism works. Now he just needs to start a holding company and live the American dream. Some give back, some don't.

  39. Anonymous

    Giving you the power to create memorials will make searching your family’s history better in the future. my roomate's ex-wife makes $79/hr on the laptop. She has been out of a job for 9 months but last month her pay was $8641 just working on the laptop for a few hours. Go to this web site CashLazy.*com
    remove the *

  40. Marcus Johnson

    LOL, he's not smart though, he took the idea of Myspace and tried setting up a dating site for ugly dorks like him. lmfao.

  41. James Johnson

    Melinda, I took care of the spammer. Those comments have to be hand weeded out by our team.

  42. Karen Boyd

    Dan Mead, I believe you are right on. Scott, I know "you" are not a moron… especially since" I grew up with you knowing you didn't have to pick up a text book in order to make "A's." Everyone has an opinion & I thank you for always giving me yours; "especially when you advised me to "NOT" buy fb stock!" Love You Brother!!!

  43. Bobby LeQuia

    Yeah, a big house in California. Underwater investments are great these days. lol.

  44. Brian Webber

    Two words: Myspace, aol, compuserve, prodigy, MSN, "Two and a Half Men"… that was more than two words…once I started, it was just SO easy!

  45. Tony M. Lucci

    No one was forced to buy the stock. People point the finger at everyone but themselves when they lose, and take credit for the smart decision they made when they win…read about the odd-lot theory…that's YOU!

  46. Roland Doucet

    The mortgages were pushed on people in the mid 2000s. You are only making excuses for the Repugnants and their bankster friends on Wall Street. Before these deregulated bankster gamblers drank the kool-aid, you were checked from A to Z for a mortgage and if you weren't an extremely sure risk, you were rejected. After the mortgage lending had been sub-contracted out, and there was a profoundly reckless hysteria of lending, they would even lend money to N.IN.J.AS (industry jargon for no income, no job, no assets)! As if the loans officers—after all, the experts in this transaction—didn't know better. But they were on commission and the more money they pushed out, the more money they made. They would assure these poor unsuspecting victims (who had been trolled) not to worry; that the value of real estate was going up so fast that the equity being built up constantly would look after their liquidity problems. Those people had mortgages pushed on them and were the real victimes of the whole incredibly criminal scam.

    You're too right-wing and simple-minded to get it, and you're blaming the victims. Typical.

  47. Roland Doucet

    My comment above was meant for Scott Boyd. Sorry if it appears to answer Katie Brown.

  48. Edward Tan

    $38, $28, $18…it's all the same. These things work the same way every time. The insiders only paid pennies per share.

  49. Steven Fries

    I think Scott is lonely wanna be investor that has to troll on facebook. Get a life.

  50. Alaina Toadpipe

    Mr Boyd, the comments on the page are in regard to the fact that Zuckerberg is currently being sued. For you to get up in arms and say "if he'd done something illegal he'd be in jail" is jumping the gun because he may well be. More likely though, he'd end up with a mighty big fine. With all due respect, it sounds as if you are not very familiar with the legal details surrounding insider trading, otherwise his unloading of stock at the time he did would sound VERY sketchy and I don't think you'd hesitate to say so. I could be mistaken, but it sounds like you are not very well informed yourself.

  51. Shane Magee

    well scott, following your own logic, the banks and investment groups who gambled WAY beyond their means should simpky have been responsible and said "no." then western europe and the united states should have been allowed to fail utterly, receiving NO help from any government or taxpayer and we should all have been allowed to watch as they lapsed back into the 19th century and india, brazil and china lead the world forward into the new millennium. (i know that's probably going to happen within a generation or two anyway, but you would simpy have them speed up the process). no one needs help or a bailout – no individual that is. however, if you are a corporation (which, depending on your own country's legislation, may or may not be considered a person"!) you can get ALL the money you ever need once you've bet with people's lives on the open market and you failed to deliver ANYTHING AT ALL that you promised.

  52. Alaina Toadpipe

    The bottom line is: Whoever thought fb stock would be worth anything or long lived is/was severely mistaken. And, IF Zuckerberg was aware that the stock was overvalued and banked on that in order to turn profit, then he needs to be locked up. There is a reason the SEC was formed and that Sarbanes-Oxley exists.

  53. Roland Doucet

    And Scott, what a typical redneck ahole you are.

  54. Alaina Toadpipe

    @Scott Boyd, You seem to be hitting all of the typical talking points. Let's look at reality for a moment, shall we? Almost every single person out there applying for a home or car loan cannot afford what they are trying to buy. How many people have $200k in the bank and say "I'm going to buy this home for cash"? At any time the economy can tank or a person can loose their jobs, so while it is the responsibility of each person to live within their means or to only take on as much debt as they can reasonably repay even if things go "tits up" the fact remains that people within the banking and loan world are also at fault. In attempting to for close on homes without having all of the required paperwork, in forging documentation so that they could transfer assets, they committed fraud. That puts them at fault for those actions. There are regulations surrounding how loans and foreclosures happen and the banks in question decided to ignore those rules and regulations. By all rights, there should be people going to prison for this, and it's not the home owners.

  55. J.r. Schaaf

    I know almost nothing of investing, but I knew right away that FB was a bad investment. I find this all hilarious!

  56. Michael Caudill

    @ SCOTT BOYL, So your saying cause people didnt make payments on their loan that was singed by a machine they are at fault. I dont think so. If joe shmo did that isnt that kinda called forgary/in-trapment so to say.

  57. Michael Caudill

    As Al capone and medical marijuana industry has found out. If the goverment cant charge you with a direct crime, they violate the 9th and 10th amendments and call the IRS.

  58. Michael Caudill

    As Al capone and medical marijuana industry has found out. If the goverment cant charge you with a direct crime, they violate the 9th and 10th amendments and call the IRS.

  59. Michael Caudill

    As Al capone and medical marijuana industry has found out. If the goverment cant charge you with a direct crime, they violate the 9th and 10th amendments and call the IRS.

  60. Alaina Toadpipe

    Darn straight! I always find it funny how Some People rail about how breaking the law is breaking the law and how Person X should go to prison, but then when it's one of their buddies they blow it off. People are silly.

  61. Anonymous

    As you can see, I'm commenting with Yahoo! I do not use Facebook as my social networking platform. Aside from that, there are two huge flaws in the valuation – first that Facebook has 900 million users (which it doesn't) and second that its profits will continue to double every year for the foreseeable future (the premise behind the $38 valuation). Facebook doesn't have 900 million users – it has 900 million ACCOUNTS. Big difference when you realize that many users have multiple accounts, particularly due to the fact that many of their social games (Farmville, Mobland, etc) reward people for inviting friends into the game. No friends? No worries! Just create new accounts! I myself have four "fake" Facebook accounts. My dog has a Facebook account – and he has 600 friends! At 20x earnings, this stock would be worth $7 – $8 per share. Hey, if it's good enough for Apple and Google, it should be good enough for Facebook. I wouldn't touch this stock unless it was under $10 per share – and even then I have huge reservations about long-term sustainable given lack of proprietary technology, zero barriers to entry, and tons of competition.

  62. RocketMan McFodder

    Yeah he's indeed a smart guy…. because even if he DOES spend some time in jail (Looking at Martha Stuarts case, it'll be club med of jails and then only a year IF that.) When he gets out he'll disappear into obscurity with still a couple billion dollars in the bank. Then he'll step down from FB…and leave it for everyone else to pick up the pieces…. well played Zuckerberg.

  63. George Orwell

    I WISH I HAD BOUGHT STOCK. I thought it worth 5 dollars and said so!
    AH BUT IF I HAD. Then I could sue to.
    Facebook will just pay them off. And more, then some more. Its chump change to them CHUMPS! Law suits abound. but they are rolling in it!

  64. Emmanuelle Olavarria

    This seems exactly like Enron, except it's a one man show!
    don't tell me that "The Overlord" is smarter than "The Smartest guys in the room"! Say it ain't so! just WOW!
    By the way I don't feel bad for him only having 15 billion in the bank, I'm certain his most depressing day has him doing cartwheels out his driveway and all the way down to the bank, laughing and giggling like a little shcool girl!

  65. Poogey Hash

    Isn't this the same crap that Martha Stewart did, and went to prison for?

  66. Scott Boyd

    Get all the facts and let Zuckerberg have his say before condemning him. Lynch parties seem to be the first reaction to anything these days.

  67. Chris Smith

    I would have done the same thing. Facebook has no real value. It produces nothing aside from giving your information to companies and govt. Its almost identical to the dot.com bubble the happened in the 90's.

  68. Cortney Baller

    of course fb stocks are overvalued! there real business isnt in social networking, its in advertising. and of course Mark only shared select information, he was making a sale. When was the last time you bought something and the sales person said "just so you know, your paying too much for that and its going to break within a week". NEVER! anyone the paid $38-$50 per stock (or whatever the price was) is stupid. Besides, those who took part in the IPO could have done their own research on the matter. BUT i do hope he gets sued and loses some of that 15 billion. haha

  69. Anonymous

    my roomate's aunt makes $83/hr on the laptop. She has been without work for 8 months but last month her pay was $8682 just working on the laptop for a few hours. Read more on this site…NuttyRichdotcom.

  70. Anonymous

    my roomate's aunt makes $83/hr on the laptop. She has been without work for 8 months but last month her pay was $8682 just working on the laptop for a few hours. Read more on this site…NuttyRichdotcom.

  71. Anonymous

    my roomate's aunt makes $83/hr on the laptop. She has been without work for 8 months but last month her pay was $8682 just working on the laptop for a few hours. Read more on this site…NuttyRichdotcom.

  72. Anonymous

    Of course it was over valued. Anything that's going to trade at 50-60 times earnings at the opening bell is entered into as a short term speculation play, mostly by shorting the stock. It didn't translate as an 'investment' opportunity.

  73. Will Gates

    Totally true.. I have 4 accounts.. I used them to play farmville, cityville and the like.. I gave myself gifts, workers, etc playing those games.. That was the only reason for multiple accounts… Bet a lot of other folks are doing the same..

  74. Anonymous

    Leave Zuckerturd with $10,000 in the bank. That's fair. All he's done is successfully reinvent the pyramid scheme and all these so-called losses piling up now are just collateral damage. Every confidence man knows the price of admission before going in and it's never, ever unfair. Ask a con man if he'll spend $10 to make a $1000 so long as he's willing to cut the lawyers in for $50 and he'll be peddingly snake oil on the street faster than you can like the idea on Facebook. But it's not all bad news for the buyers. At least they won't have to hear about Zuckerturd much longer. Now that the scheme has come to fruition, he's cashed out as planned and Farcebook is on its own. In fact Zuckerturd is secretely praying Farcebook will just go away now. Believe it or not, he is. He is.

  75. Anonymous

    Well said. Farcebook doesn't even have users. It has customers, and they're not even the buying kind. The value of Farcebook is built on hype and hype alone. You can convince anyone of anything with sophisticated, deceptive, highly saturated marketing. Telling businesses they're missing out on hundreds of millions of buyers gives them no choice but to buy in since everybody else is too. The phenomenon is very similiar to mass hysteria which relies heavily on fear to manipulate the target. But Farcebook advertisers are dropping like flies now because they know the jig is up. Zuckerturd cashed out (minus lawyer concessions of course) and in so doing revealed the true value of his snake oil and his intentions.

  76. Bruno M. Kebran

    So what he sold $1BN? You don't like the stock, don't buy it…stop crap shooting people…try starting your company and tell us how easy it is!

  77. Alaina Toadpipe

    I've been Some People on occasion and am perfectly happy to admit to it. But to be honest and give credit where it's due, it really is a Whinnie the Poohism, something like… A Very Big Stick, for example. ;) Amazing how it just adds the right amount of something, isn't it?

  78. Carlson Yamamoto

    I'm the founder and CEO of the new Facebook Alternative: OnlyMeWorld, which will be launching in the Fall of 2012. With regard to the 900 Million so called users, and these fake accounts you are 100% correct. For those investors who feel that Facebooks stock was overvalued and/or were mislead, you feelings are valid. For some time now, many of us in the industry have known Facebook was misleading both it's users and potential investors as it's so called member totals nearly doubled from 500 million a year ago, to nearly 900 million today. Facebook who has some of the most advanced software, data mining and web tracking software in the world today can easily track users IP addresses and locations…bottom line…EVERYONE WAS SCAMMED!

    If Facebook & Wall Street had used the actual ACTIVE users throughout the world, and valued each ACTIVE user based on demographics, considered the ROI and satisfaction of advertisers, and considered Market Share & Market Saturation…Facebooks IPO would have been valued at no more then $10.00 & the actual market capitalization would have been around $10 Billion if they were lucky.

    Let's also consider how Facebook & other social network sites will be effected as they continue to have a complete disregard to users privacy rights, etc.,

    As we enter an new era of digital communication, companies like Facebook, Twitter, and MySpace will become obsolete/irrelevant as they fail to be innovative. These companies remind me of "Beepers in the 1980's," when texting features were added…"One hit wonders!"

    I have a feeling Facebook, Mark Zuckerberg, and a lot of other people will be facing record investor lawsuits and jail time very soon!

  79. Carlson Yamamoto

    I'm the founder and CEO of the new Facebook Alternative: OnlyMeWorld, which will be launching in the Fall of 2012. With regard to the 900 Million so called users, and these fake accounts you are 100% correct. For those investors who feel that Facebooks stock was overvalued and/or were mislead, you feelings are valid. For some time now, many of us in the industry have known Facebook was misleading both it's users and potential investors as it's so called member totals nearly doubled from 500 million a year ago, to nearly 900 million today. Facebook who has some of the most advanced software, data mining and web tracking software in the world today can easily track users IP addresses and locations…bottom line…EVERYONE WAS SCAMMED!

    If Facebook & Wall Street had used the actual ACTIVE users throughout the world, and valued each ACTIVE user based on demographics, considered the ROI and satisfaction of advertisers, and considered Market Share & Market Saturation…Facebooks IPO would have been valued at no more then $10.00 & the actual market capitalization would have been around $10 Billion if they were lucky.

    Let's also consider how Facebook & other social network sites will be effected as they continue to have a complete disregard to users privacy rights, etc.,

    As we enter an new era of digital communication, companies like Facebook, Twitter, and MySpace will become obsolete/irrelevant as they fail to be innovative. These companies remind me of "Beepers in the 1980's," when texting features were added…"One hit wonders!"

    I have a feeling Facebook, Mark Zuckerberg, and a lot of other people will be facing record investor lawsuits and jail time very soon!

  80. Timothy Sigler

    I also have more than 1 facebook account not to mention that there are millions of underage kids that have them too I would never do bussness with any internet company that breaks its own rules and lets children have accounts they know who there are and they should cancell those accounts but greed is what this idiot that owns it are all about I love to see him go to jail but he wont.

  81. Timothy Sigler

    I also have more than 1 facebook account not to mention that there are millions of underage kids that have them too I would never do bussness with any internet company that breaks its own rules and lets children have accounts they know who there are and they should cancell those accounts but greed is what this idiot that owns it are all about I love to see him go to jail but he wont.

  82. Timothy Sigler

    and before any body say why do you have more than one account at a site you said you wouldn't do bussness with I have been to facebook in over 6 months and wont just to lazy to cancell my account there.

  83. Mike Troxell

    Anyone who buys stock without researching it first deserves what ever fait they get. The media hype is what caused the stock price to go so high. anyone with a brain would know that and anyone at Facebook who didn't sell would be a fool not to sell at the media influence hyped up price.

  84. Tim C Fulton

    Heather Bradley Aside from the terrible grammar the woman is absolutely correct. The stock market is no different than gambling money at the casino. If you win something great, if you lose tough luck, but don't cry about it later.

  85. Anonymous

    Bet a lot of other folks are doing the same..my roomate's ex-wife makes $79/hr on the laptop. She has been out of a job for 9 months but last month her pay was $8641 just working on the laptop for a few hours. Go to this web site CashLazy.*com
    remove the *

  86. Anonymous

    Bet a lot of other folks are doing the same..my roomate's ex-wife makes $79/hr on the laptop. She has been out of a job for 9 months but last month her pay was $8641 just working on the laptop for a few hours. Go to this web site CashLazy.*com
    remove the *

  87. Lou Altman

    Let's see…… Zuck stole the idea, developed it on his own, abandoned his (only friends) for financial gain and now is worth billions. Yeah…… I agree with the Yaho guy FB is a buy at $5 and only worth $12 if they have good growth wiht honest numbers. Good luck!

  88. Lou Altman

    Let's see…… Zuck stole the idea, developed it on his own, abandoned his (only friends) for financial gain and now is worth billions. Yeah…… I agree with the Yaho guy FB is a buy at $5 and only worth $12 if they have good growth wiht honest numbers. Good luck!

  89. Marcelo Calasich

    Cry me a river guys. Those who bought in at $38-40 should have known the risk involved, and if you didn't then turn that finger around and point it back at yourself because you bought into the hype #realtalk.

  90. Patrick Kennedy

    YES STOCK STILL OVERVALUED A PROPER PRICE BASED ON PE RATIOS AND TRUE EARNINGS PAST AND FUTURE EXPECTED WOULD SUGEEST A LOW OF JUST OVER $13 USING CONSERVATIVE EXPECTATIONS OF ADVERTISING REVENUE AND A HIGH OF $18 IF WILDEST ADVERTISING AND GAMING REVENUE PREDICTIONS HOLD TRUE AS THE COMPANY IS WORTH LESS THAN 1/3 OF THE 100 BILLION IPO SUGGESTED VALUE.

  91. Ian Gallant

    Why doesn't Facebook sue members with phony accounts? This would make sense given terms of use… Never gonna happen but the greed is more than monetary given the amt of ppl using numerous names to acquire fake stats in 'games'.

  92. Anonymous

    We're not "worried", most of us are hoping he goes to jail. The longer the better.

  93. Anonymous

    We don't care about your "roomate's aunt" [sic].

  94. Anonymous

    Who the hell is Scott Boyd? There's no post by a Scott Boyd here.

  95. Anonymous

    Why take the time to admit publicly that you're having fun witnessing the misery of others? It's nothing to be proud of, you should be ashamed.

  96. Anonymous

    I think it's the same charge, but Zuckerburg's is far greater in scope, and intent as well I think. Seems to me Martha Stewart didn't really know she was even doing anything wrong.

  97. Anonymous

    Who the hell is Scott Boyd? Who are you guys talking to?

  98. Kori Crawford

    No. I’m disappointed over the outcome of FB going public. I had thought it would experience success as with Apple earlier years….

  99. Shane Magee

    an idiot who left a few idiotic comments and then deleted them all. normal transmission can resume.move on. nothing to see here. as you were.

  100. Steven Chaisson

    Here's the valuation problem for me: Facebook claims that in 2011 it had approx. $700 million in cash, not enough for $57 million valuation right now, but even more than that, they don't tell you if this cashflow is from financing or operations. Well with 4 billion in equity financing, before the IPO, and $1.4 billion in dept, I can guess. Thirdly, how can you have $3.7 billion in revenue and $3.7 billion in working capital, sound to me like Yahoo Accounts Receivables, make believe, and they haven't really made a dime in sales.

  101. Michael O'Hagen

    Facebook will never have true value. In just the past twelve months I have cut my Facebook time by 98 percent. When we shop we use google search. Facebook is only a social network. Gm pulled a $40,000,000 ad campaign 2 days before the stock offering. 1,000,000,000 users and GM found not enough return on $40,000,000 investment. Tells you all you need to know

  102. Jay Lee

    They are idiots. So are those whose used their clients money. I mean do you really think the kike can be trusted? Wtf is wrong with everybody.

  103. Derek Thomas Lirio

    I disagree here. He's not going to jail. Facebook, has become, THE social network. Everyone communicates through it, and pretty much all aspects of users' social lives, are now part of Facebook.

  104. Adam Gomez

    facebook might be the social network right now, but myspace used to be THE social network. to say facebook can't be replaced with the latest and greatest social network is ignorant. the next best thing might be bought out by facebook though just like how they bought instagram.