The suit against Nasdaq is fascinating in principle. In brief, trading started nearly an hour late and there were difficulties with trade confirmation. Now, the sinking price is also a reflection of a) weaker public demand than underwriters may have anticipated and b) disquiet over dubious accounting/disclosure in the runup to the IPO. But clearly, delays and stumbles right at the commencement of trading took a lot of air out of the balloon.
How to value this, though, is a very difficult question that will most likely be left to a jury. Assuming NASDAQ were found to be negligent, it could be messy; Facebook's market cap has gone down by $20 billion since it began trading (or $39bn peak-to-trough). Nasdaq's Market cap is only $3 billion.
The Lazar suit is more interesting. If the class is approved, we may well find out what FB is worth. But not via the market. Litigation has a way of revealing facts. Share with us FB. Be more open.
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[ 4.4 ms ] story [ 13.7 ms ] threadHow to value this, though, is a very difficult question that will most likely be left to a jury. Assuming NASDAQ were found to be negligent, it could be messy; Facebook's market cap has gone down by $20 billion since it began trading (or $39bn peak-to-trough). Nasdaq's Market cap is only $3 billion.