Nasdaq has been sued by an investor who believes that the exchange was ignorant in handling the Facebook stock and allowed the shares to be inflated which ultimately resulted in huge losses for the investors.
Phillip Goldberg, a Maryland resident, is seeking class-action status on behalf of all investors who lost money because Nasdaq delayed or otherwise mishandled their buy, sell or cancellation orders for Facebook stock on May 18, the day the social networking giant went public.
A technical glitch delayed Facebook’s market debut by roughly half an hour, and later delayed order confirmations.
Nasdaq Chief Executive Robert Greifeld told investors at his company’s annual meeting on Tuesday that “clearly we had mistakes in the Facebook listing,” but more than 570 million shares were processed on the first day.
Goldberg filed his lawsuit on Tuesday in the U.S. District Court in Manhattan.
The case is Goldberg v. Nasdaq OMX Group Inc et al, U.S. District Court, Southern District of New York, No. 12-04054.
What should have been the start of a beautiful life for Facebook seems to be turning into a nightmare as it’s stocks continue to tumble.
But through Facebook stocks might have been over-valued after the initially tumbles it will recover and attain a stable position. Until then, stay away from Facebook.
What do you believe is the reason for Facebook’s IPO debacle? Tell Us.