REPORT: Nasdaq Seeks Dismissal Of Lawsuit Related To Facebook IPO

Nasdaq parent company Nasdaq OMX Group filed a motion with the U.S. District Court for the Southern District of New York seeking dismissal of a lawsuit by investors and trading firms related to the exchange’s technical issues during Facebook’s initial public offering.

The Wall Street Journal reported on the stock exchange’s filing, saying that it argued that its role as a market regulator should protect it from legal action over trading losses, and writing in the motion:

Nasdaq and other national securities exchanges cannot adequately shoulder those regulatory responsibilities without SRO immunity.

Vincent Cappucci, senior partner with Entwistle & Cappucci, one of the lead counsels in the case, told the Journal:

We’re highly confident of the merits of the claims we’ve asserted against Nasdaq.

The Securities and Exchange Commission ordered Nasdaq to pay a $10 million fine in May due to its mishandling of the high-profile IPO.

Readers: Do you think Nasdaq should bear further responsibility for its role in Facebook’s bungled IPO?

Image courtesy of Shutterstock.

Related Stories
Mediabistro Course

Social Media 201

Social Media 201Starting October 13, Social Media 201 picks up where Social Media 101 left off, to provide you with hands-on instruction for gaining likes, followers, retweets, favorites, pins, and engagement. Social media experts will teach you how to make social media marketing work for your bottom line and achieving your business goals. Register now!