Nasdaq Asks Judge to Dismiss Suit Over Facebook IPO Role

Bloomberg is reporting that Nasdaq has asked U.S. District Judge Robert Sweet in Manhattan to dismiss a group of consolidated class actions claiming it violated securities laws and mishandled the first day of public trading in Facebook, the world’s biggest social network. Nasdaq claimed its legal status as a self-regulatory organization, or SRO, shields it from being sued for actions taken as part of its regulatory responsibilities.

“SRO immunity protects Nasdaq from liability for claims relating to its allegedly negligent handling of the commencement of trading in Facebook stock and alleged misrepresentations because all of those claims arise out of Nasdaq’s regulatory functions,” the exchange said in a court filing yesterday.

Nasdaq also argued that the plaintiffs failed to state a sufficient legal claim that it was negligent or that it violated securities laws.