Claims against Nasdaq pile up for botched Facebook IPO launch - Macleans.ca
 

Claims against Nasdaq pile up for botched Facebook IPO launch


 

Nasdaq could be on the hook for over $100 million in losses after its botched implementation of Facebook’s IPO launch last week, Reuters reports:

A technical glitch delayed the social networking company’s market debut by 30 minutes on Friday and many client orders were delayed, giving some investors and traders significant losses as the stock price dropped. The exchange operator is facing lawsuits from investors and threats of legal action from brokers.

Four of the top market makers in the Facebook IPO — Knight Capital, Citadel Securities, UBS AG and Citi’s Automated Trading Desk — collectively have probably lost more than $100 million from problems arising from the deal, said a senior executive at one of the firms.

Meanwhile, Facebook itself is facing scrutiny in Washington, as Senator Jack Reed (D) from Rhode Island, a senior member of the Banking Committee, is requesting information about the confusing IPO launch. Watch here the report by Bloomberg TV.


 
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Claims against Nasdaq pile up for botched Facebook IPO launch