Facebook Inc. (NASDAQ: FB) will not have to face scores of suits over flaws with its initial public offering. A court has ruled that all of these cases should be put together, which should help the social network make a single defense and save on legal fees.
Facebook’s shares have traded consistently below their $38 IPO prices. Wild and uncontrolled trading the first day the stock was available caused some investors considerable losses. And there is an open question about whether the company mislead investors about its prospects. According to The Droid Guy:
Facebook’s wishes to defend itself against one consolidated case has been granted. The social networking behemoth will now face a legal battle in Manhattan, New York against dozens of lawsuits over its failed initial public offering.
There are estimated 50 lawsuits filed against the social network, Nasdaq exchange, and Facebook’s underwriters. A panel of federal judges have decided that all of these cases will be collected throughout the United States as one and transferred to a district court in Manhattan headed by Judge Robert Sweet.
Douglas A. McIntyre
It’s Your Money, Your Future—Own It (sponsor)
Retirement can be daunting, but it doesn’t need to be.
Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!
Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.