Nasdaq (NDAQ) Seeks SRO Immunity in Facebook (FB) IPO Litigation
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Nasdaq OMX Group (Nasdaq: NDAQ) filed a motion with the U.S. District Court for the Southern District of New York to seek dismissal of a lawsuit brought about by investors and trading firms that the exchange mishandled the IPO of social network giant Facebook (Nasdaq: FB).
The Nasdaq said its role as a market regulator shields it from legal action over trading losses, according to the WSJ.
In May, Nasdaq paid the U.S. Securities and Exchange Commission $10 million in a settlement over whether or not the exchange broke market rules in Facebook's May 2012 IPO.
Nasdaq said Facebook's IPO fell within the exchanges role as a self-regulatory organization (SRO). The status affords clearinghouses, exchanges, and the Financial Industry Regulatory Authority (FINRA) the ability to "govern and police market activity."
Shares of Nasdaq are flat Wednesday, while Facebook is indicated lower.
The Nasdaq said its role as a market regulator shields it from legal action over trading losses, according to the WSJ.
In May, Nasdaq paid the U.S. Securities and Exchange Commission $10 million in a settlement over whether or not the exchange broke market rules in Facebook's May 2012 IPO.
Nasdaq said Facebook's IPO fell within the exchanges role as a self-regulatory organization (SRO). The status affords clearinghouses, exchanges, and the Financial Industry Regulatory Authority (FINRA) the ability to "govern and police market activity."
Shares of Nasdaq are flat Wednesday, while Facebook is indicated lower.
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