Dozens of lawsuits against Facebook Inc., the NASDAQ exchange and various underwriters will be consolidated before a federal judge in New York. That court must sort through the legal aftermath of Facebook’s botched initial public offering. Last month, a panel of federal judges ordered that cases filed around the United States be transferred to U.S. District Judge Robert Sweet in Manhattan. While Facebook had requested the transfer, some investors sought to keep their cases in California. Even though some of the cases concern different Defendants and claims, the panel said “they (the cases) do involve enough common questions of fact, related circumstances and common discovery to warrant centralization.”
Lawsuits against NASDAQ OMX Group Inc., which accuse the stock exchange of being negligent in failing to execute trades in the face of record-breaking volume during the IPO, will also be in Judge Sweet’s court. But the exchange has already asked that their cases proceed on a separate track from the Facebook lawsuits. The case is In Re: Facebook Inc, IPO Securities and Derivative Litigation, U.S. Judicial Panel on Multidistrict Litigation, No. 12-md-2389.
Source: Insurance Journal
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