Facebook (FB), Nasdaq, and Facebook’s underwriters are on the hook for some 50 lawsuits after technical issues that disrupted the social media giant’s May initial public offering (IPO). Those battles are being waged on two fronts:
- Analysts have accused the company and its underwriters of deliberately hiding information about the company’s growth prospects by changing data on the company at the last minute without disclosing it to retail investors. 29 of the 53 securities class-action filings related to IPOs this year name Facebook as a defendant, according to Stanford University’s Securities Class Action Clearinghouse.
- Others have criticized Nasdaq over glitches that caused problems in buying and selling FB shares during the first few hours of trading. Angry investors have already filed about 30 suits against Facebook in the Southern District Court of New York.
Read more about the legal battles going on over Facebook at the Wall Street Journal.