Washington, June 17 (ANI): Social networking site Facebook has said trading problems at the Nasdaq Stock Market is resposnsible for a sharp drop in the company's stock price after its initial public offering.
The social network site, which is facing dozens of lawsuits from disgruntled shareholders, also insisted that nothing about its IPO process was 'illegal or even out of the ordinary'.
The defense came in a court filing in which Facebook and the banks, led by Morgan Stanley, are seeking to combine the more than 40 federal and state lawsuits around the country into one federal case in New York.
In its filing, Facebook said the lawsuits "ignore that what Facebook and (the banks) allegedly did both followed customary practices and did not violate any rules."
"As is customary, the May 9 filing did not include any forward-looking projections," the New York Daily News quoted Facebook, as saying in its filing.
While Facebook said those glitches at Nasdaq hurt its stock for days, seven of the lawsuits claimed that Nasdaq errors created market uncertainty and caused shareholders to lose money.
Nasdaq admitted that there were technical problems, but Nasdaq spokesman Joe Christinat declined to make any comments.
The highly anticipated IPO was marred by technical glitches that delayed trading when Facebook went public on May 18. (ANI)