Facebook IPO Underwriters Dodge Insider Trading Action

Law360, New York (August 15, 2013, 5:47 PM EDT) -- A group of investors allegedly bilked in the Facebook Inc. initial public offering cannot break away from multidistrict litigation to pursue an insider trading class action against underwriters Goldman Sachs & Co., JPMorgan Securities LLC and Morgan Stanley & Co. LLC, a New York federal judge ruled Tuesday.

U.S. District Judge Robert W. Sweet denied a motion by two investors to sever their claims from the MDL against Facebook, the banks and others related to the failed IPO. The investors had originally filed insider trading claims...
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