Lawsuits brought against Facebook Inc, NASDAQ, and different underwriters will all be brought under a judge in NY, who will have to sort throughout the after effects of Facebook’s IPO earlier this year. According to Wall Street & Technology, recently a group of federal judges ordered that the cases be transferred to U.S. District Judge Robert Sweet in Manhattan. Facebook requested the transfer, and vow to strongly defend their case.
Some investors are claiming that they lost money because of technical glitches in the Nasdaq stock market, and have also accused NASDAQ of, “selectively disclosing unflattering information about its business prospects to Wall Street analysts who then shared it with privileged investors.” The lawsuits could cost Facebook millions to defend itself. Since the stock opened at $38 a share it has fell as much as 50%.
Facebook asserts that it didn’t violate any rules, and claimed that NASDAQ is to blame for trading glitches on the day of the offering. The grouping of the cases keeps lawsuits from happening at the same time in various courts. Lawsuits against NASDAQ OMX Group Inc will also be for Sweet to review. NASDAQ has already asked that their suits occur on a different track than Facebook’s.