Facebook: IPO debacle was Nasdaq’s fault
The Facebook IPO was full of problems from day one, when a “technical error” on the Nasdaq exchange led to trading delays and other issues.
“Don’t blame us!” was the theme of a Facebook court filing submitted Friday in response to lawsuits that shareholders filed after the company’s disastrous IPO.
More than 40 lawsuits in different state and federal courts have been filed in the weeks since Facebook (FB) went public on May 18.
The offering was plagued with problems. On day one, a “technical error” on the Nasdaq exchange led to delays and errors in Facebook trades. Later, allegations surfaced that Facebook disclosed certain financial information in advanceto analysts for big banks and not to average investors.
Friday’s filing was Facebook’s first response to the lawsuits, which the company wants consolidated into one case in a New York court.
Facebook used the filing to preview its defense, blaming Nasdaq for the trading issues that marred its debut day. It also admitted to having private conversations with analysts, but insisted it “followed customary practices” and didn’t disclose anything improper.