Facebook Inc (FB): IPO Suit Update, and Sadness Prevails?

Facebook Inc (NASDAQ:FB), believe it or not, is still dealing with the legal fallout of its IPO of 15 months ago, and the issues and problems that came to fruition on that fateful day. We only mention this because the case, where Facebook and NASDAQ were sued by investors for varying reasons surrounding the IPO, had slid into the molasses that is the legal system in the U.S. and has created a slowing of news from the courtroom. That, of course, could be seen as a boon for CEO Mark Zuckerberg, who is not only personally attached to the case legally as someone who is charged with feeding insider information to a select number of investors, but also for his tech startup, which has been slowly trying to rally back from its lows on the stock market to get back near the $38 IPO price.

Facebook Inc (FB)Facebook Inc (NASDAQ:FB): Insider Trading Charges off the Table

In an odd action in the courtroom, Facebook (NASDAQ:FB) and NASDAQ combined were about to face 31 legal cases as a single class-action lawsuit before U.S. District Judge Robert Sweet, but Jan Wolfe of The Litigation Daily reported an interesting, if somewhat convoluted twist in the case. The lead attorney firms for the plaintiffs have decided to pursue the 29 claims of violation of the Securities Act of 1933 and not tackle the two claims of violation of the Securities Exchange Act of 1934 that deal with the disclosure of non-public information. Two smaller law firms who brought up the two Exchange Act claims petitioned the court for the opportunity to sever the consolidation and pursue their own class-action on the two claims that were being left out, but Judge Sweet ruled against the firms based on precedent, writing that lead cousel for the plaintiffs in a multi-district litigation case such as this has discretion in pursuing the case it sees fit.

Facebook May Make Us Sadder, Study Finds

Facebook Inc (NASDAQ:FB) is a very powerful tool in developing and enhancing social connections among 1 billion worldwide residents, but could it contribute to our well-being emotionally – as in, might it  actually be a predictor of how we might be feeling in the future based on how much we use the network? That is one of the interesting questions a University of Michigan study tried to answer recently.

Diane Swanbrow wrote about the results of the study on Health Canal, based on an article written by Ethan Kross, a social psychologist at the University of Michigan in Ann Arbor. The study, which was conducted by eight UM researchers in collaboration with a researcher in Belgium, found that the more that the sample users accessed the social network, the worse they felt and/or the lonelier they felt. The study looked at 82 young adults and the researchers would send text messages to each of them five times a day for two weeks, and each text message provided a link to a survey which asked them five questions about their mood, well-being and if the subjects had any direct (face-to-face or phone) contact with anyone since the previous message.

In summarizing the study, Kross wrote, ”Facebook provides an invaluable resource for fulfilling the basic human need for social connection. But rather than enhance well-being, we found that Facebook use predicts the opposite result—it undermines it.” The study revealed that those who used Facebook more over the two-week period tended to feel worse after the two-week trial, while those who had more direct contact with people tended to report feeling better about themselves over time.

Study co-author John Jonides, a cognitive neuroscientist at Michigan, said, ”This is a result of critical importance because it goes to the very heart of the influence that social networks may have on people’s lives.”

Do you think fund gurus like Leon Cooperman or Bill Miller feel better about themselves with their stakes in Facebook Inc (NASDAQ:FB)? Well, if you think this study is somehow revolutionary, we ask you to watch the video below from 2012 that asked the question about Facebook and its power  to promote happiness.

DISCLOSURE: None

Recommended Reading: This Fund Manager, a Tiger Cub, is Bullish on Facebook

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!