Lockup releases are so incredibly overrated. Every short on every message board of every IPO always starts typing in ALL-CAPS about the "dreaded" lockup release. Yet if you do any historical study at all of the effect of lockup releases you would see that they are nothing but the smallest blips. The "huge" drops that the shorts predict virtually never materialize. Yes, the stock will almost always drop due to simple economics. It takes a few days for the new shares to be absorbed.
But no lockup release has EVER hurt a GOOD company. Intel, Microsoft, AOL...they've all had lockup releases. Want a more recent example? Look at ARBA, its lockup period ended last month and that sucker has flown to the moon since then.
Insider selling at the end of a lockup is also NOT an indication of trouble at the company. These insiders have usually received a large portion of their compensation in stock options/grants in the prior years. It's like they accept a lower salary for the potential gain on the company going public down the road. These individuals simply sell to finally get some cash for personal reasons, regardless of where the price of the stock is at.
In addition, there is actually a HUGE benefit to the lockup releases in the long run. They create liquidity. Many large institutions will not invest in IPO's with small floats because they cannot take meaningful enough positions in the stock to impact their funds performance without driving the price of the stock too high while they are trying to buy it. But guess what? If it's a good company, they wait for the lockup to end, watch the stock drop and then buy in knowing they won't jack the price up with each buy order.
Now that you are informed, the next time you read a short that says "THIS STOCK WILL TANK TO ZERO AFTER THE LOCKUP!!!!!!", you can join the rest of the knowledgable investors in laughing at the moron.