The New York Times is reporting that Facebook Inc. is poised to file a motion to consolidate all of the shareholder lawsuits in which the company is facing over its highly controversial IPO. An anonymous source familiar with the matter provided the publication with this information.
Additionally, the IPO's lead underwriters, Morgan Stanley, Goldman Sachs and JPMorgan Chase are expected to join the motion as well.
The to-be-filed document is supposedly lacking a whole lot of detail, but will offer some insight into Nasdaq's role in Facebook's IPO day, and how the exchange's admitted errors effected the stock's trading activity.
Recently, Nasdaq agreed to put aside US$40 million to cover losses that brokers experienced after its system was unable to process orders properly when Facebook stocks went up for grabs.
Several shareholders have filed suit against Facebook, claiming that the company and its underwriters withheld information relating to a lower-than-previously-noted revenue forecast. The plaintiffs believe that Facebook only made this information available to select, larger investors.
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