Facebook on Saturday pointed the finger at Nasdaq for the first time since the company went public and watched its stock prices tumble. The stock exchanges software systems failed during Facebook’s initial public offering which in turn led to delayed orders, cancelled orders being processed and various other glitches that angered investors and pushed down the social networks stock price.
Six class action lawsuits have already been filed against Nasdaq, each which blames the stock exchange for causing uncertainty and ultimately losses among investors.
In their newly filed motion Facebook states:
“As has been widely reported in the press, the commencement of trading in Facebook shares was delayed as a result of problems with Nasdaq’s software systems, which impaired the orderly execution of trades and price levels.”
The report further notes that Nasdaq apologizing for the IPO issues in the days following the glitch may have made things worse. Facebook notes:
“Commentators have stated that Nasdaq’s announcement caused a rash of stock sales that again drove down the price of Facebook shares.”
Facebook’s accusation comes after the social network along with Morgan Stanley, J.P. Morgan and Goldman Sachs filed the motion in Federal District Court to consolidate 40+ shareholder lawsuits.
In its motion Facebook said it followed “customary practice” while disclosing its finances, including an S-1 filing for its IPO which stated on May 9 that user growth was “outpacing” the number of ads the social network could reach among its 901+ million users.
According to the motion:
“The May 9 Amendment ascribed that trend to the increased usage of Facebook on mobile devices, in which display advertising was limited at the time, as well as certain product changes that affected the volume of advertising that could be displayed. As is customary, and like the original S-1, the May 9 Amendment did not include forward-looking projections.”
You can read the full report on Dealbook.