SHAREHOLDER claims against Nasdaq OMX Group Inc. over Facebook Inc.’s botched IPO will move forward after a federal judge found that the exchange was not immune from liability over the technical glitches that occurred that day.
Southern District Judge Robert Sweet refused to dismiss about a dozen lawsuits against the exchange, which argued it was protected from lawsuits as a “self-regulatory organization” under U.S. Securities and Exchange Commission rules. The exchange also argued that investors, who have no contractual relationship with the exchange, cannot sue under New York’s economic loss doctrine.
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