Investor sues Nasdaq over Facebook IPO

Maryland man seeks class action status on behalf of all Facebook investors

A Maryland man filed suit against Nasdaq yesterday, claiming the exchange operator mishandled orders of Facebook Inc. shares after the social network’s initial public offering (IPO) last week. The negligence, the suits says, caused losses for millions of investors.

Phillip Goldberg is seeking class action status on behalf of all Facebook investors who lost money because Nasdaq delayed or mishandled their purchase of the stock, the suit says. Nasdaq’s technical glitch delayed the Facebook’s IPO by about a half-hour. It also delayed order confirmations.

At an annual meeting on Tuesday, Nasdaq’s CEO Robert Greifeld admitted, “clearly we had mistakes in the Facebook listing.” But he went on to offer that more than 570 million shares were processed on that first day as justification for those mistakes.

In a separate suit, another investor filed a proposed class action against Facebook alleging the company’s registration and prospectus regarding its IPO were materially false.

For more InsideCounsel stories about Facebook:

IP: Don’t let intellectual property be the deal breaker

Facebook user sues company for $15 billion

Court denies class action status to Facebook advertisers

Facebook fires back, accuses Yahoo of patent infringement

Facebook buys 750 patents from IBM

Yahoo sues Facebook over patents, as promised

Contributing Author

Cathleen Flahardy

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