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:

Stocks end mixed despite GDP growth surprise Stocks end mixed despite GDP growth surprise
2015 stock outlooks paint mixed picture 2015 stock outlooks paint mixed picture
Stocks kick off the holiday week higher Stocks kick off the holiday week higher
Feast of data on tap for holiday week Feast of data on tap for holiday week
Dow flirts with 18,000 for first time Dow flirts with 18,000 for first time
Dow, S&P 500 end week with record closing highs Dow, S&P 500 end week with record closing highs
It’s ‘risk on’ in markets as stimulus reigns supreme It’s ‘risk on’ in markets as stimulus reigns supreme
Dow, S&P 500 hit new closing highs Dow, S&P 500 hit new closing highs
All Rights Reserved to News-Light.com