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.