A number of lawsuits leveled at Facebook Inc(NASDAQ:FB) in the wake of its catastrophic flotation on the Nasdaq are to be merged into a single case and heard by a judge in New York.
As per Reuters, a panel of federal judges has ordered that the cases be transferred to US District Judge, Robert Sweet in Manhattan.
This was in spite some claims made by people arguing their cases must be heard in the jurisdictions where the cases where initially filed. V3 had contacted Facebook for commenting on this update but did not receive any reply at that time.
The problems circle around a number of issues that started with Facebook’s floatation, after it said that people in financial institutions were handed over inside information on Facebook’s figures that were kept secret from other investors.
Issues around the company’s mobile offerings have also seen poise in Facebook’s future financial performances falter, a problem that even Mark Zuckerberg has admitted of having overlooked for long.
The news comes at a time when Facebook has announced that it has exceeded the milestone of one billion users, a remarkable moment in the growth of the company as it continues to revamp investor confidence in its brand.
Nearly a tenth of all members of the site were found have fake and spam accounts earlier this year, probably diluting the truth of the one billion figure.
With over $2 billion of investors’ money vanishing since Facebook shares went on sale, it makes sense why so many investors are angry. Some experts, however, argue that the publicly available information should have served the purpose of warning the investors. The trouble that firms like Facebook have in making money from mobile phones, in which ads are difficult to install, have been well-known.
For now, Facebook seems to be in a decent position, with nearly 50 lawsuits consolidated into a single one.