NEW YORK, June 15: Facebook is set to file a motion to consolidate all shareholder lawsuits against the company and is also expected to place some blame on Nasdaq, a media report has said.
“One month after its botched initial public offering, the social network is set to file a motion to consolidate all the shareholder lawsuits against the company,” the New York Times reported citing sources.
More than 30 cases have been filed against Facebook, mostly in New York and California.
The motion will represent the first time Facebook has publicly addressed the lawsuits and the performance of its highly anticipated, but ultimately lacklustre, IPO on May 18, the daily said.
Citing sources, NYT said the lawsuit will provide some perspective on Nasdaq’s role on listing day and the effect its actions had on the stock’s trading activity.
While the document is expected to be relatively thin on detail, it will provide some perspective on Nasdaq’s role on listing day and the effect its actions had on the stock’s trading activity, the person briefed on the matter said.
Facebook is expected to place some blame on Nasdaq, the person added.
Facebook’s stock has tumbled in the public markets since its debut by more than 25 per cent below its offering price of USD 38 per share.
The lead underwriters, Morgan Stanley, Goldman Sachs and JPMorgan Chase, are expected to join the motion, which could be filed in the Federal District Court for the Southern District of New York today, NYT said.
Nasdaq has recently agreed to set aside USD 40 million to cover broker losses after its system failed to properly process orders on listing day.
While many have pointed fingers at Nasdaq, others have taken aim at Facebook and its underwriters for pursuing a large offering at a high price. (PTI)
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