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Facebook Investors, Nasdaq OMX Group Attempt to Separate Lawsuits

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Facebook (NASDAQ: FB) investors and Nasdaq OMX Group (NASDAQ: NDAQ) have requested that a judicial panel separate their dispute from the dozens of other shareholder lawsuits relating to the social network's IPO.

According to Reuters, investors first sued Nasdaq OMX Group for "negligently handling their orders for Facebook shares."

Reuters quoted the investors, who said, "When compared to the Nasdaq actions, the securities actions allege different claims based on different facts against different defendants on behalf of broader classes and are subject to different and unique pretrial procedures."

Goldman Sachs (NYSE: GS), J.P. Morgan Chase (NYSE: JPM), and Morgan Stanley (NYSE: MS) -- Facebook's lead underwriterswho were also sued -- wanted the lawsuits surrounding the social network's IPO to be grouped together.

These are not the only lawsuits Facebook has encountered this year. In March, the social media giant was sued by Yahoo! (NASDAQ: YHOO) for infringing on the company's patents. Last month, Facebook paid $20 million to settle a "Sponsored Stories" dispute that could have costed the company $100 million.

In addition to its lawsuits, Facebook has been struggling to maintain its position as a primary avenue for advertisers looking to hype new products and services. Ford (NYSE: F) and Coca-Cola (NYSE: KO) gave their support to the company; General Motors (NYSE: GM) recently dropped its advertisements from the social network.

Follow me @LouisBedigianBZ

 

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