Facebook response to IPO lawsuits to focus on Nasdaq
Spencer Platt/Getty Images
(CNET) Facebook (FB) is expected to make its first public response as early as today to the wave of investor lawsuits regarding the company's lackluster IPO.
The social-networking giant is planning to file a motion to consolidate all the shareholder lawsuits pending against it, providing inside perspective on the role that the Nasdaq stock exchange's performance had on the stock's trading activity, a personal familiar with the matter told The New York Times. The IPO's lead underwriters -- Morgan Stanley, Goldman Sachs and JPMorgan Chase -- are also expected to join the motion, the paper reported.
Facebook representatives declined to comment on the report. CNET has also contacted Nasdaq for comment and will update this report when we learn more.
Soon after Facebook's stock began trading on May 18 at $42.05, shares tumbled to their $38 offering price. Shares have steadily declined about 30 percent since the IPO, leading to a wave of
Facebook faces new lawsuit over IPO disclosures
In the days before the public offering, the lead underwriter for the deal
Did Facebook underwriter spook investors before IPO?
Who downgraded Facebook's prospects? Maybe Facebook did
Facebook, which reported in March that more than half its 900 million members were using mobile devices to access the network, updated its filings with the Securities and Exchange Commission in early May to say that the
Facebook amends IPO filing: Mobile a growing problem
However, Facebook's motion is also expected to place some of the blame for the IPO's flop at the feet of the Nasdaq stock exchange, which has already expressed regret over the decision to proceed with the blockbuster offering after a 30-minute delay in the IPO's opening contributed to confusion among traders. Traders complained they were not able to confirm changes or cancellations made to Facebook orders starting as early as 4:30 a.m. PT. Later on in the morning, some traders said they had not received confirmation from Nasdaq that transactions had actually been completed.
In response to demands for compensation for losses incurred by the snafu,
Nasdaq plans for $40 million payout for Facebook losses
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