Facebook , Nasdaq diverge over IPO lawsuits

by Darcie | Wednesday, Jul 18, 2012 | 499 views

The Nasdaq OMX Group Inc and investors who had sued the exchange operator on the $16 billion IPO of Facebook Inc, have asked the judicial panel to keep their dispute separate from a dozen other shareholder lawsuits in the same matter. Facebook Inc, the world’s no.1 social network, along with the underwriters Goldman Sachs Group Inc, Morgan Stanley and JPMorgan Chase & Co filed for a motion requesting that various lawsuits over the IPO issue be grouped together in a Manhattan federal court.

However in the court papers that were filed before a US Judicial panel on multi-district litigation , Nasdaq and investor plaintiffs who had sued them over the same, asked the panel not to group their case with other shareholder lawsuits against Facebook.

Facebook’s lawyer did not return any calls seeking for his comments.

More than a dozen lawsuits have been filed against Facebook and the underwriters for hiding the weakened growth forecasts for the firm ahead of the IPO on May 18, one of the largest one is the US history.

Nasdaq was also sued by investors claiming that they had to suffer losses on account of Nadaq negligently handling the orders on Facebook shares. As compared to the Nasdaq actions, the securities actions are alleging different claims basing on different facts on different defendants on the behalf of broader classes and will be subject to unique and different pretrial procedures, the investors said in their filing .

Nasdaq made a similar argument in a different filing, although conceding the fact that some coordination with Facebook investor actions was warranted.

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