Facebook Inc. on Friday asked the Second Circuit to partly reverse a settlement in a suit by Nasdaq investors against the exchange over technical problems on the day Facebook launched its initial public offering of stock, arguing that the social networking site is entitled to reduced damages in a related suit.

The social media giant, which made itself a party in the Nasdaq suit as an intervenor, appealed a New York federal judge's final order approving the settlement, alleging that the order did not resolve whether class members in both the Nasdaq suit and the separate IPO suit against Facebook would see any settlement in the IPO suit reduced by the Nasdaq settlement amount or whether members would collect common damages in each suit.

Facebook argued that the district court had no justification for shifting the question of whether common damages exist from the Nasdaq action to the Facebook IPO action, and that the court erred by closing the Nasdaq case without deciding whether common damages exist. The district court failed to resolve whether Facebook was entitled to a "pro tanto reduction," meaning a partial payment, in the settlement, Facebook told the Second Circuit.
The Nasdaq defendants are represented by William A. Slaughter, Stephen J. Kastenberg and Paul Lantieri III of Ballard Spahr LLP.