Facebook (NASDAQ: FB) Faces Lawsuit for Poor IPO

New York, October 05 (News-Light.com) –  The social networking site, Facebook (NASDAQ: FB) has to face a legal battle in Manhattan, New York against the dozens of lawsuits over its failed initial public offering (IPO).

There are around 50 lawsuits filed against the social network, Nasdaq exchange and Facebook’s underwriters. A panel of federal judges have decided that all the cases will be collected throughout the United States as one and transferred to a District Court in Manhattan headed by Judge Robert Sweet.

Last June, Facebook filed a motion asking that the lawsuits would be taken as a single case. The bungled IPO last May fueled the lawsuits after Facebook’s Nasdaq stock price opened at $38 but then never recovered the same price back.

Facebook denies that it is a fault but blames Nasdaq charging, citing as the main reason why the share prices fell. The CEO of Nasdaq remarked about the claims by pointing at the arrogance and overconfidence among the staffers of the stock exchange, resulting to the mishandling of the IPO.

Investors have claimed that they have lost their money after Nasdaq stock market suffered technical glitches. They have accused Facebook for providing unflattering information about some if its business prospects to analysts in Wall Street who in turn have shared them with the privileged investors.

Filed in: Stock Market Tags: , ,

You might like:

BlackBerry CEO says he expects to double software revenue next year BlackBerry CEO says he expects to double software revenue next year
Insider holdings overhanging Alibaba shares Insider holdings overhanging Alibaba shares
Did Alibaba IPO mark a top for stocks? Did Alibaba IPO mark a top for stocks?
Facebook Is Partnering With Stripe to Power “Buy” Button Facebook Is Partnering With Stripe to Power “Buy” Button
Stocks shake off gloom; Dow ends up 167 Stocks shake off gloom; Dow ends up 167
Stocks mostly lower as tech stocks tumble Stocks mostly lower as tech stocks tumble
Dow off more than 100 again after airstrikes Dow off more than 100 again after airstrikes
Stocks, once buoyant, face fresh threats Stocks, once buoyant, face fresh threats
All Rights Reserved to News-Light.com