NASDAQ Faces Lawsuit Over Botched Facebook IPO

By
Facebook co-founder Mark Zukerberg is seen on a screen getting ready to ring the NASDAQ stock exchange opening bell in Times Square in New York, May 18, 2012. Facebook is set to go public on May 18, 2012 and is likely to have an estimated market valuation of over 100 billion USD when its shares begin trading on the NASDAQ.
Photo: Emmanuel Dunand/AFP/Getty Images

The backlash over Facebook's botched IPO now includes a lawsuit by a Maryland investor against NASDAQ. Phillip Goldberg is seeking class-action status on behalf of all fellow investors who lost money because NASDAQ delayed or otherwise mishandled their buy, sell, or cancellation orders when Facebook went public last Friday. NASDAQ Chief Executive Officer Robert Greifeld acknowledged a technical glitch that delayed the start of trading on Facebook by 30 minutes, saying NASDAQ was "humbly embarrassed" and "this was not our finest hour." But whether Goldberg (and the rest of the class, if it's certified) have an actionable negligence claim remains to be seen. What the investors do have for certain is a stock that's now dipped to $31 a share, or $7 below its $38 IPO price.