| July 17
July 17 Nasdaq OMX Group Inc and
investors who sued the exchange operator over Facebook Inc's
$16 billion initial public offering have asked a judicial
panel to keep their dispute separate from dozens of related
The No. 1 social network and lead underwriters Morgan
Stanley, Goldman Sachs Group Inc and JPMorgan
Chase & Co had filed a motion requesting that the
various lawsuits over the IPO be grouped together in federal
court in Manhattan.
But in court papers filed on Monday before the U.S. Judicial
Panel on Multi-District Litigation, Nasdaq and investor
plaintiffs who sued it asked the panel not to combine their
cases with the shareholder lawsuits against Facebook.
Brant Bishop, a Kirkland & Ellis lawyer representing
Facebook, did not immediately return a call seeking comment.
More than a dozen lawsuits by shareholders have accused
Facebook and its underwriters of hiding the company's weakened
growth forecasts ahead of the May 18 IPO, one of the largest in
Nasdaq, meanwhile, was sued by investors who claimed it
caused losses by negligently handling their orders for Facebook
"When compared to the Nasdaq actions, the securities actions
allege different claims based on different facts against
different defendants on behalf of broader classes and are
subject to different and unique pretrial procedures," these
investors said in a filing Monday.
Nasdaq made a similar argument in a separate court filing,
while conceding that some coordination with the Facebook
shareholder actions was warranted.
U.S. District Judge Robert Sweet in Manhattan is overseeing
the litigation against Nasdaq.
Separately on Monday, two plaintiffs who sued Facebook asked
that their cases be heard in a federal court in California, and
not in New York.
It was not immediately clear when the judicial panel, which
meets in different cities in the United States, would address
how best to handle both sets of cases.
Facebook's IPO was to have been the culmination of years of
breakneck growth for a social network that became a cultural and
But shares in the eight-year-old company founded by Mark
Zuckerberg in his Harvard dormitory room have shed almost a
quarter of their value, or $24 billion, since going public at
$38 a share.
The case is In Re: Facebook Inc, IPO Securities and
Derivative Litigation, U.S. Judicial Panel on Multi-District
Litigation, No. 12-md-2389.