Nasdaq OMX Group Inc asked a judge to dismiss lawsuits that it had against it filed by investors and traders over its role in Facebook Inc's initial public offering (IPO). Facebook announced its IPO last May 2012.
US District Judge Robert Sweet in Manhattan was asked by Nasdaq to throw out a group of consolidated class actions. The said class actions stated violation on securities laws and mishandled first day of public trading for Facebook, the social media giant. Nasdaq claimed its legal status as a self-regulatory organization therefore shielding it from being sued for actions taken as part of its regulatory responsibilities.
Nasdaq also argued that the plaintiffs failed to state sufficient legal claims. It said that it was never negligent on its regulatory responsibilities or that it had violated securities laws.
The plaintiffs suing Nasdaq sought to have the company responsible for technical and other trading related errors. The allegations created market uncertainty and losses to traders and investor that followed the Facebook trading from the beginning.
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