Facebook snafu



When people thought about how they expected the Facebook IPO to go this probably wasn’t the future they saw.  Numerous problems have collided into a major legal storm, with what seems like everyone involved suing everyone else. 

Facebook, it’s officers, and its underwriters (including JPMorgan Chase & Co , MorganStanley, and Goldman Sachs Group ) are being sued by various plaintiffs who allege that Facebook’s financial outlook and projections were withheld from all but very important people.  NASDAQ is being sued because trading was obstructed, with many investors unable to confirm that their trades had gone through successfully.  Defendants are also being investigated by government officials who are looking into the snafu.

As far as Facebook is concerned, this legal mess is a disaster.  But there is one winner in all of this: law firms.

“Nothing is better than a wealthy client with gobs of money to spend on lawyers,” said former lawyer and partner with Blackrobe Capital Partners John Coffey.

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