Investors sue Nasdaq, Facebook and Zuckerberg over IPO

It hasn’t taken long for the lawsuits to start piling up following Facebook’s troubled initial public offering on Friday. Nasdaq OMX Group Inc. is being sued by an investor claiming the exchange operator was negligent in handling orders for Facebook shares at its IPO, causing losses for investors. In addition, a different civil lawsuit has also been filed against Facebook, Mark Zuckerberg, IPO underwriters Morgan Stanley & Co. and others, alleging violations of securities laws. Phillip Goldberg, a Maryland resident, is seeking class-action status on behalf of all investors who lost money because Nasdaq delayed or otherwise mishandled their buy, sell or cancellation orders for Facebook stock. A technical glitch delayed Facebook’s market debut by roughly half an hour, and later delayed order confirmations. Separately, investor Darryl Lazar filed a proposed class-action lawsuit in a California state court, alleging that Facebook’s registration and prospectus were materially false, according to a statement from plaintiff law firm Glancy Binkow & Goldberg. On Monday, news broke that a consumer Internet analyst at lead underwriter Morgan Stanley cut his revenue forecasts for Facebook in the days before the offering—information that may have reached some investors but not most before the stock was listed. Reuters reports representatives from Facebook and Morgan Stanley could not immediately be reached for comment today on the securities class-action suit. Since being offered at $38 per share, Facebook stock has fallen to just over $32 as of this afternoon.