|A member of the Funky Media Group|
|It's Nasdaq's Fault!|
|Posted by Nick G.|
|Saturday, 16 June 2012 17:43|
Following the disastrous results of the Facebook IPO, multiple lawsuits have been filed and investors have been up in arms over the whole situation. Many are speculating that Facebook leaked insider information to stockbrokers and high-level investors that weren't made available to the general investing public. No one really knows for sure if that was, or is, the case, but Facebook has repeatedly made statements washing their hands of any guilt or responsibility on the matter. According to Facebook executives, the biggest source of technical and economic fear and instability is the NASDAQ; specifically, glitches in the software that they feel the IT team should have done a better job to prevent. Regardless, a lot of people are still quite upset, and we can only hope at this point that Facebook will be able to make a recovery and safe face.
"NEW YORK (CNNMoney) -- "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 advance to 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."