Nasdaq And Investors Suing It Ask Court To Separate Its Cases From Those Involving Facebook

By David Cohen 

Nasdaq exchange parent Nasdaq OMX Group and investors that are suing the company filed papers with the U.S. Judicial Panel on Multi-District Litigation in Manhattan Monday asking that their lawsuits be kept separate from the dozens of suits by Facebook shareholders against the social network due to its bungled initial public offering, Reuters reported.

Facebook and underwriters of its IPO — including lead underwriters Morgan Stanley, Goldman Sachs, and J.P. Morganfiled a motion last month to consolidate all IPO-related lawsuits.

According to Reuters, the investors suing Nasdaq said in the filing:

When compared to the Nasdaq actions, the securities actions allege different claims based on different facts against different defendants on behalf of broader classes and are subject to different and unique pretrial procedures.

Reuters added that Nasdaq’s filing contained a similar argument for separating its cases from those against Facebook.

Facebook’s IPO launched May 18 at $38 per share, but technical issues by the exchange were one of the factors that drove the social network’s share price down. At the time of this post, it was trading at $28.39 per share.

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