You're watching...
Attorney Samuel Rudman on the class action lawsuit against Facebook and its underwriters over the company’s IPO.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Investors taking to the courts over the IPO fiasco.
Including one that seeking class action status.
One of the liars behind that -- joining me now Sam Rudman partner of Robbins Geller Rudman and downed.
-- welcome to the show great to have you here by telephone at least why do you think you have a case here.
Well thanks for having me -- -- couldn't be.
In the studio.
We think we they're very.
-- -- Middle of the IPO road show.
Up FaceBook and granted bear registration statement the loudest statement about revenues for the second quarter which is -- progress now.
Com.
-- at that very same time all -- underwriters.
But beyond errors were the IPO.
Reduced earnings estimates dramatically.
But it -- anybody but -- -- elect.
Individual investors didn't get this news right.
And you know they didn't and you know they're really goes back your statement about being our people our and -- people aren't even buying bitter dispute may.
I mean at the worst of the worst.
Coming on the yogurt JPMorgan.
The -- or Chesapeake big -- that.
Insiders.
You know Wall Street insiders.
Are are taking it -- -- -- we -- investors are all -- the -- art goes all of our.
Very -- single investor.
In our FaceBook IPO that would corner and know that those underwriters reducing their earnings that.
Well let me tell you it.
-- let me tell you what people on the other side of the equation are saying tonight what they're saying is.
Look you -- your money -- take your chances it's a stock market it's not guaranteed income contract okay how do you respond to that.
Our response that he's been hell bent and they'll -- -- -- -- -- to people not -- every.
It was immaterial at -- boy you're reduced earning estimate I want you all else certain people.
You know that works that all it wouldn't bet I bet you know we we understand that I expect that it's argued there's there's there's it -- -- How warm -- well there's there's information analyze that distort the market.
And that's what happened in this space now we elected at the registration statement should have included more -- about that the audience in in earnings growth.
And apple look no further and expect that though we are writers all the people hear about the most all we can't starters that it want very -- very.
And apparently said the news we've been getting today is that that information came the guidance originally came from FaceBook itself.
So it's not just an analyst making up numbers at the end of the day it was the company itself giving the guidance and are you who in part filing your -- on the basis of that information.
What what account what went up under -- IPO.
Figure due diligence very public company repairing registration statement.
Registration statement -- -- who loudest statement that respect or earning this is an old wary of those underwriters didn't go speak for the company.
Find out what was going well put up a -- -- moderate tradition vehicle that it.
And it's better telling everybody -- only told ample -- Right well really -- -- is something different -- -- you're seeking.
Class action status for this suit how many people -- -- signed -- so far and are you optimistic he can get that status.
Well.
But are we had this requesting a lawsuit I don't have to be any other.
They can bet that.
They can declare sexist barriers or something that go to the start and in securities was there are -- what that process a long way off.
Are there they're there -- there's a period are we go now or the speaker and move forward I don't know -- I wanna.
Goes through -- those are that you know so wanna go through what was he built now less respect -- -- great doubt that the people in the class.
Are they gonna be probably be a lot Milosevic but all people people want -- lawsuit.
Are at least -- we'll -- -- -- our we're gonna have to leave it there thanks for coming on tonight I hope you'll come back is as this thing.
You know starts to add you know -- -- comes to pass -- and we see what happens with that thank you for your time.
