Monday, June 11, 2012


Citizenship for sale: Foreign investors flock to U.S.

Good riddance, Eduardo.
Facebook co-founder Eduardo Saverin drew public ire last month following the revelation that he had renounced his U.S. citizenship, a move widely seen as a tax dodge. But thousands of wealthy foreigners are lining up to replace him, making investments here and putting themselves on a path to citizenship in the process.
The State Department expects to issue over 6,000 "investor visas" in the current fiscal year, which would be an all-time record. Other countries, meanwhile, are following the U.S.'s lead, keen to spur growth in lean economic times.
"Our goal is certainly job creation, and that's what this program is all about," said Bill Wright, a spokesman for U.S. Citizenship and Immigration Services. "At the same time, it's allowing somebody from a foreign country to come and invest in our nation."
Under the government's EB-5 Immigrant Investor program, foreign investors can get conditional visas that allow them and their families to live, work and attend school in the U.S. To qualify for the visa, they must invest at least $1 million in a new or recently created business, or $500,000 for businesses in rural or high-unemployment areas.
The investment must be demonstrated to have created or preserved at least 10 full-time jobs for U.S. workers within two years. Assuming this condition is met, investors and their families graduate to permanent resident status, and can apply for full citizenship three years later.
While the EB-5 program has been around since 1990, demand has been surging as of late, fueled in large part by China's growing elite, who accounted for 70% of the roughly 3,500 investor visas issued last year. State Department officials expect the program's quota of 10,000 visas per year, which includes visas given to the spouses and children of investors, to be filled for the first time ever within the next year or two.
Some critics of the U.S. program question the fairness of letting wealthy immigrants pay for special treatment, while others say investments and job creation claims need stricter vetting. Immigrants who arrive via the program have no guarantee of recovering their investments, and may face deportation if they don't produce the required number of jobs.
Of the roughly 12,000 immigrants who've arrived on the EB-5 investor visa, just 39% have earned permanent residency, according to USCIS data.
There's also the lengthy application and approval process -- a 2005 study by the Government Accountability Office said the program's reputation for red tape had dampened interest among foreigners in the preceding years.
USCIS press secretary Christopher Bentley said in an email that the agency "continues to take steps to enhance [the EB-5 program's] efficiency and integrity." USCIS recently expanded the team of analysts responsible for evaluating EB-5 projects and proposals, he said.
Whatever the program's problems, interest has been growing in recent years, and meanwhile, the U.S. has faced increasing competition from other countries trying to woo well-heeled foreigners with the promise of residency or citizenship.
In January, Ireland announced a new residency program for immigrant investors, and Australia unveiled a similar program last month.
"Governments are reinvigorating their policy and their resources around this," said Eric Major, the CEO of Henley & Partners Ltd, an international consulting firm based on the European island of Jersey that specializes in immigration assistance for the wealthy.
Around 20 countries currently offer residency or citizenship by investment, Major said, a figure that may soon grow with economies struggling in much of the developed world. Major said he had met with five governments in the past eight months to discuss such programs.
Demand shows no sign of slowing down, either. International travel, banking and communication have become increasingly easy, while Asia, in particular, is minting new millionaires at a rapid pace.
"At no time in human history have we ever been so mobile and has there been so great a wealth effect from China and India," Major said.
In the U.S., the immigrant investor program has been responsible for at least 46,810 jobs and more than $2.3 billion in investments since its inception in 1990, according to U.S. Citizenship and Immigration Services.
That's a small fraction of overall foreign investment in the U.S., but it comes at no cost to the government. Were the EB-5 program to meet its 10,000-visa quota, it would contribute more than $4.4 billion to GDP and create or preserve nearly 75,000 jobs annually, according to a 2010 report prepared for the government by consulting firm ICF International.
The EB-5 program is up for renewal in the fall, and while USCIS says it has "no indication" that the initiative will be allowed to expire, some supporters are more wary.
"We can't let our guard down," said David Andersson, an immigration attorney and president of the Association to Invest In the USA. "The deadline approaches and Congress just demonstrates a reluctance to get things done."
For foreign investors, Andersson said, the main appeal of immigration to the U.S. is access to good schools for their children or other family-related concerns.
That was the case for Jordan Gagner, a Canadian investment manager who came with with his wife and three children to Arizona in 2009. His wife had come down with a serious case of rheumatoid arthritis, a condition exacerbated by Vancouver's cold, wet weather.
"We just thought, we've got to get down to a climate that's more conducive to this disease," Gagner said.
Gagner invested in an assisted-living complex being constructed in Washington. He and his family now have green cards giving them permanent resident status, and plan on applying for citizenship as soon as they're able.
"We're fiercely proud about Canada, but there's things we love about the U.S. that Canada just doesn't provide," Gagner said.

Thursday, June 7, 2012


Facebook: NASDAQ Execution Class Action

We have been asked to be co-counsel in a class action alleging NASDAQ was negligent in its execution on behalf of investors in the Facebook IPO. A copy of the complaint can be found here.
If you suffered losses in trading Facebook (FB) shares on Friday May 18, Monday May 21 or over the weekend of May 19 and 20 as a result of NASDAQ execution errors, please contact us at (212) 742-1414 or email us atjake@zamansky.com.   ** View Complaint **

FILL OUT ONLINE FACEBOOK IPO CONTACT FORM:

 http://www.zamansky.com/cases/facebook-nasdaq-execution-class-action.html

***************************
OTHER FACEBOOK CLASS ACTION INFO

* 05/29/12: Forbes: The Little Guy Gets Punched in the Facebook - Forbes article by Jake Zamansky on Facebook IPO.
*  05/24/12: Wall Street Journal: Some Big Firms Got Facebook Warning -Jake Zamansky quoted on Facebook IPO.
*  05/23/12: Fox Business News Video on Facebook IPO -  Jake Zamanskytalking about class action alleging NASDAQ was negligent in its execution on behalf of investors in the Facebook IPO.


Milberg LLP Announces Class Action Lawsuits Filed Against Facebook, Inc.

NEW YORK, May 30, 2012 (BUSINESS WIRE) -- Milberg LLP announces that class action lawsuits were filed in the United States District Court for the Southern District of New York on behalf of purchasers of Facebook, Inc. ("Facebook") FB -1.86% common stock pursuant to the Company's May 18, 2012 initial public offering (the "IPO"). Actions were also filed in the Northern District of California.
The complaints charge Facebook, certain of its officers and directors, and underwriters of the IPO with violations of the Securities Act of 1933. The actions allege that the Registration Statement and Prospectus issued with the IPO were false because they did not disclose that the Company experienced a reduction in revenue growth, and that underwriters lowered revenue guidance during Facebook's road show.
On May 18, 2012, Facebook's Prospectus became effective and Facebook sold 421 million shares to the public at $38, for total proceeds of more than $16 billion. Shares of Facebook fell 18% over the following two trading days to close at $31 on May 22, 2012, amid revelations about the lowered guidance.
If you purchased Facebook shares, you may, no later than July 23, 2012, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a class member that represents other class members in directing the litigation. Your share in any recovery will not be affected by serving as a lead plaintiff, however, lead plaintiffs make important decisions that could affect the overall recovery for class members. You do not need to be a lead plaintiff to recover. You may retain Milberg LLP, or other attorneys, for this action, but do not need to retain counsel to recover. If this action is certified as a class action, class members will be automatically represented by Court-appointed counsel. The complaint in this action was not filed by Milberg.
Milberg LLP has represented individual and institutional investors for over four decades and serves as lead counsel in Courts throughout the United States. Visit the Milberg website ( www.milberg.com ) for more information about the firm. If you wish to discuss this matter with us, please contact the following attorneys:
        Andrei Rado, Esq.
        Milberg LLP
        One Pennsylvania Plaza, 49th Fl.
        New York, NY 10119-0165
        Phone number: (800) 320-5081
        Email: arado@milberg.com
        


Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.
SOURCE: Milberg LLP
        
        Milberg LLP 
        Andrei Rado, Esq., 800-320-5081 
        arado@milberg.com
        


Copyright Business Wire 2012 

Wednesday, June 6, 2012


Nasdaq tries to make amends for Facebook problems

NEW YORK (AP) — The Nasdaq stock exchange tried to make amends with investors ensnared by technical problems on the dayFacebook went public.
But the apology was not universally accepted.
Nasdaq said Wednesday afternoon that it would hand out $40 million in cash and credit to reimburse investment firms that lost money on Facebook's opening day because of computer glitches at the exchange.
Nasdaq's chief rival, the New York Stock Exchange, fired off a statement condemning the move, saying Nasdaq was giving itself an unfair advantage and rewarding itself for its own mistakes.
One broker, Knight Capital, said the planned reimbursements weren't nearly enough, encapsulating the complaints that other brokers and investment firms were making privately.
Facebook went public May 18 amid great fanfare, but computer glitches at the Nasdaq threw the day into chaos. The opening was delayed by half an hour. Technical problems kept many investors from buying shares in the morning, selling them later in the day, or even from knowing whether their orders went through. Some investors complained that they were left holding shares they didn't want.
Nasdaq will pay about $14 million in cash to investment companies that bought or sold shares, or tried to, at certain levels. The rest will be given as credit, meaning the firms won't have to pay as much in the usual fees required for trading on the Nasdaq. Nasdaq predicted that those benefits could last as long as six months.
The credit for trading fees riled the NYSE. It said the move gave investors a strong incentive to move more of their trading to the Nasdaq, allowing Nasdaq "to reap a benefit from market share gains they would not have otherwise received."
"This is tantamount to forcing the industry to subsidize Nasdaq's missteps and would establish a harmful precedent that could have far reaching implications for the markets, investors and the public interest," the NYSE said in a statement.
The war of words underscores the constant battle that Nasdaq and the NYSE are locked in. The NYSE, with roots dating to the 18th century and its familiar neoclassic headquarters on Wall Street, bills itself as reliable and well-known. Nasdaq, which started in 1971, promotes itself as a high-tech exchange favored by high-tech companies including Apple and Google.
The $40 million amount is far more than usual: Nasdaq has traditionally imposed a $3 million cap for reimbursing customers who lost money because of technical problems.
It's hard to imagine that the amount could cover all the claims. Knight Capital alone has estimated that it lost as much as $35 million because of Nasdaq's glitches.
Knight Capital said it was disappointed that the reimbursement pool "does not come close to covering reported losses" connected to the technical glitches.
"Their proposed solution to this problem is simply unacceptable," the company said in a statement.
It isn't clear what will happen next. Nasdaq still has to get approval from the Securities and Exchange Commission for its plan. The NYSE said it would "strongly press our views" but didn't give details. Knight Capital said it is "evaluating all remedies available under law," which could mean it plans to sue.
Facebook's stock originally priced at $38 and closed that first day at $38.23, a disappointment to speculators who had hoped for a first-day pop. Nasdaq has said it was embarrassed by the glitches, but that they didn't contribute to the underwhelming returns.
Nasdaq says it will reimburse investment firms that tried to sell shares at $42 or less but either couldn't sell or sold at a lower price than they intended. It will also reimburse investment firms that bought at $42 but in trades that weren't immediately confirmed. FINRA, the financial industry's self-regulatory group, will review the claims for compensation. Facebook's shares went as high as $45 on the first day.
The shares rose after the Nasdaq announcement and closed up 94 cents, nearly 4 percent, at $26.81. That's still down nearly 30 percent from the initial pricing.
The Facebook offering has left a bad taste for many investors, though they don't blame Nasdaq alone. Many also think that Facebook as well as Morgan Stanley, the main bank that underwrote the deal, overestimated demand, pricing the shares too high and issuing too many.
Nasdaq says the problems have been fixed and that it has hired IBM to review its operating systems.

Monday, June 4, 2012


Stamell & Schager, LLP Initiate Class Action Lawsuit Against Facebook

RELATED QUOTES

SymbolPriceChange
FB26.90-0.82
NEW YORK, NY--(Marketwire -06/01/12)- Stamell & Schager, LLP filed a class action lawsuit against Facebook, Inc. ("Facebook" or the "Company") (FB), its officers and underwriters in federal court in the Southern District of New York (No. 12-cv-4332) on behalf of all persons who purchased Facebook common stock pursuant and/or traceable to the Company's May 18, 2012 initial public offering (the "IPO"). Investors who suffered a financial loss are encouraged to speak directly with the attorneys litigating this action by either contacting Andrew R. Goldenberg, Esq. via email atgoldenberg@ssnyc.com or by visitingwww.facebookclassactionipo.com. You may move the Court, no later than July 23, 2012, to appoint you as lead plaintiff, a representative party that acts on behalf of other class members.
The Complaint alleges that the defendants violated the federal securities laws by failing to publicly disclose that Facebook realized that it would suffer a severe and pronounced reduction in revenue growth in the current year due to an increase of users of its Facebook mobile application or website through mobile devices rather than through traditional personal computers. The reduction was so pronounced that the Company told the Underwriter Defendants to materially lower their revenue forecasts for 2012. In addition, that Facebook failed to disclose in the Registration Statement and the Prospectus that, during the roadshow conducted in connection with the IPO, certain of the Underwriter Defendants reduced their second quarter and full year 2012 performance estimates for Facebook. These reductions were material information which was selectively disclosed by defendants to certain preferred investors, but was omitted from the Registration Statement and the Prospectus.
Stamell & Schager, LLP specialize in the fields of securities, corporate governance and consumer protection litigation. With over 40 years of experience, the firms' attorneys have established themselves as leading representatives of investor and consumer rights in these areas. The firms' attorneys have successfully litigated complex securities class actions in both state and federal courts through the United States and are committed to protecting investors' assets and victims of corporate wrongdoing.
Contact:
CONTACT:
Andrew R. Goldenberg, Esq.
Stamell & Schager, LLP
1 Liberty Plaza
New York, New York 10006
Fax: (212) 566-4061
E-Mail: Email Contact
Website: www.facebookclassactionipo.com 

Berman DeValerio Files Securities Class Action Suit against Facebook, Inc.

BOSTON, Mass.--(BUSINESS WIRE)--
The law firm of Berman DeValerio filed a securities class action lawsuit today on behalf of purchasers of Facebook, Inc. (FB) (“Facebook” or the “Company”) in or traceable to the Company’s May 18, 2012, initial public offering (the “IPO”).
Berman DeValerio (www.bermandevalerio.com) is one of the nation’s top law firms representing investors seeking to recover money due to stock fraud. The lawsuit, which is captioned Eannarino v. Facebook Inc., et al., 12-civ-4360, is pending in the United States District Court for the Southern District of New York. To receive a copy of the complaint, please call Berman DeValerio at (800) 516-9926 or click here.
The lawsuit alleges that Facebook, Morgan Stanley, Inc., and certain of Facebook’s officers, directors and underwriters violated the Securities Act of 1933 (“Securities Act”) in connection with the Company’s IPO, which took place on May 18, 2012. In the IPO, defendants sold 421 million shares of Facebook’s common stock at $38 per share, for total proceeds of more than $16 billion.
According to the complaint, the registration statement and prospectus filed in connection with the IPO were false and misleading, as they failed to disclose that: (1) the Company had warned its underwriters that its second-quarter 2012 sales would be at the lower end of its estimates; (2) its underwriters had lowered their performance estimates for the Company; and (3) certain defendants were actively suppressing demand for the IPO by secretly disclosing this information to certain preferred investors.
As alleged in the complaint, based on this selective disclosure and as news of Facebook’s lowered estimates reached the market, Facebook’s stock dropped precipitously, ultimately closing down $9.81 or 26%, causing investors aggregate losses of approximately $4 billion.
If you are a member of the alleged class, you may, no later than July 23, 2012, request that the court appoint you as Lead Plaintiff for the class. You may contact the attorneys at Berman DeValerio to discuss your rights and interests in the case. Please note: you also may retain counsel of your choice, but do not need to take any action at this time to be a class member. Pursuant to the Private Securities Litigation Reform Act of 1995, investors wishing to serve as the lead plaintiff are required to file a motion for appointment with the Court no later than July 23, 2012.
Berman DeValerio is a national law firm representing investors for violations of securities and antitrust laws. The firm has 45 lawyers in Boston, San Francisco and Palm Beach Gardens, Florida.
This notice may constitute attorney advertising.
Contact:
Berman DeValerio
Nathaniel Orenstein800-516-9926
norenstein@bermanesq.com



How to book stock market losses and make money

Last updated on: June 5, 2012 07:56 IST
Warren Buffett reacts after taking a bite of a Dairy Queen vanilla orange ice cream bar. Dairy Queen is a Berkshire Hathaway company.
Booking losses at the right time forms the most important part of wealth management strategy.
Do you book profit or book loss?
You have bought the shares of ABC Ltd at a rate of Rs.100 per share. The current market price is Rs.150 per share. Also you have bought the shares of XYZ Ltd at a rate of Rs.200 and the current market price is Rs 125.
Do you book profits by selling ABC or book losses by selling XYZ.
Rule No.1: Never lose money. Rule No.2: Never forget rule No.1: Warren Buffett
This quote from Warren Buffet is the essenceof selling loss-making investments as part of wealth management. However, to the contrary, most of us tend to sell those investments that make us money and prefer to hold on to those that are already making losses.
It is just probably a feeling that we could not have gone wrong and the investment would revive, or on the other hand a feeling that we have been fooled and do not want to be fooled again and do not want to take action.
The author is Ramalingam K, an MBA (Finance) and Certified Financial Planner. He is the Director and Chief Financial planner of Holistic Investment Planners (www.holisticinvestment.in) a firm that offers Financial Planning and Wealth Management. He can be reached atramalingam@holisticinvestment.in.  

How to book stock market losses and make money

Last updated on: June 5, 2012 07:56 IST
George Soros
What to do with loss making investments?
It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong: George Soros
I recollected this saying when an investor told me that he always invested in right investments at the right time. I acknowledged his prudent nature, but felt that he and many other financially prudent persons needed to know that they also required to regularly review their investments to eliminate non-productive ones for productive and paying ones.
Wealth management is all about making money work best for you.
George Soros's lessons of prudent wealth management lie in not allowing your investment to depreciate (fall in value).This involves being ready toleave your comfort zone and revise your investment decision with the right attitude of being proud of the right investment and at the same time not being disgraced or regretful in making revisions or corrections in decisions already made.

How to book stock market losses and make money

Last updated on: June 5, 2012 07:56 IST
Review your investments with the current outlook
Most of us make investments that are based on the information available to us at a given point in time. But it is important to know that with times the profitability or loss of an investment could change. It definitely proves useful to review and revise our decisions when we find that we are holding on to something that no one would buy or invest in now.
It is right that it is human to make mistakes, but holding on to a mistake just for emotional reasons cannot be pardoned. Subsequent events might alter the attractiveness of the investment.
Should we be possessive in our attachment to those investments for which the outlook has changed now? So I would say that if you need to create wealth and manage it, there is nothing wrong in being a fair weather friend; investments have to work for you and not accomplishing this goal means getting out of these investments for better avenues.

How to book stock market losses and make money

Last updated on: June 5, 2012 07:56 IST
Do I need to book losses when the market is falling?
However I wish to be excused when I say it is not good to sell when the prices on the whole have fallen down. However it is again important to believe that poor stocks would surely be losing more than good ones; fall in price just does not indicate a downturn, it is a combination of various factors like production, sales and profits also; so poor stocks or small companies may find it difficult to recoup even when we experience favourable times in the market.
Again during the fall in the market it is common for us to see that even good stocks like HDFC may be available at a discount. I would say such times are ideal to liquidate poor performing stocks that are not doing well and purchase good stocks.

How to book stock market losses and make money

Last updated on: June 5, 2012 07:56 IST
Why should you book loss?
Booking losses in poor performing investments has got some advantages. So as to quit the poor performing investments, you are forced to quit your ego and admit that you have made a wrong investment decision.
As you admit your mistake, you learn a lesson. As you learn a lesson you do not take similar wrong investment decisions in the future.
The advantage of booking losses is you move out of poor performing investments and moving into better performing investments. So you will be able to recover your losses faster.