In its first public response to the trader outrage following its messy initial public stock offering, Facebook filed a joint motion on Friday to consolidate the 40-plus class-action lawsuits against the company, requesting that the many legal precedings be moved to a federal court in New York, AllthingsD reported.
The 24-page filing essentially lays out Facebook’s defense strategy, claiming that the company essentially did nothing wrong in the entirety of its process during the weeks leading up to the IPO and in the aftermath, when its shares dropped more than 25 percent since its market debut. The filing also points out the Nasdaq exchange’s shortcomings in the IPO process, highlighting “technical problems and other trading-related errors affecting Facebook’s stock — which NASDAQ has subsequently admitted – created market uncertainty and caused investor losses.”
If you’ll recall, after Facebook’s rocky first day of trading, much of the attention was shifted to the last-minute amendments to its S-1 filing, specifically the May 9 update, where Facebook further emphasized its weakness on its mobile platform, an area in which the company struggles to find an effective monetization strategy.
