Business litigation can often seem relatively complicated compared to lawsuits filed between average citizens. A recent group of business litigation cases revolving around famed social media network Facebook could be considered even more complex than most. A slew of lawsuits have been filed in various states, including California, in the wake of the network’s less-than-stellar stock market debut. Before any of those cases can play out, however, a panel made up of several federal judges is considering whether it should consolidate the cases together and, if so, where they will be tried.
These lawsuits arose after investors decided to sue over the fact that Facebook’s public offering debut seemed to be shadowed by a series of technical troubles. There were also accusations that company insiders leaked unflattering tidbits about the company’s actual financial prospects to certain favored investors. Since the day of its public debut, the price for shares of Facebook stock has plummeted as much as 50 percent from its initial $38 value.