Investor Sues Nasdaq as Facebook Drops Again

Lawsuit says exchange mishandled the IPO
By John Johnson,  Newser Staff
Posted May 22, 2012 5:02 PM CDT
Investor Sues Nasdaq as Facebook Drops Again
A TV correspondent reports from inside the Nasdaq MarketSite in New York's Times Square on Monday.   (AP Photo/Richard Drew)

Nasdaq has admitted that it bungled the Facebook IPO, and now an investor wants to make the exchange pay up. Maryland's Phillip Goldberg sued Nasdaq on behalf of all those who lost money because the exchange delayed their orders on the chaotic opening day, reports Reuters. He seeks class-action status.

Meanwhile, shares dropped again and closed at $31, or 18% off the IPO price of $38, notes MarketWatch. “The institutional buyers don’t want to be left holding the stock as it slides, and individuals aren’t knowledgeable enough about the company to step in and catch a falling knife,” says one analyst. Click to read about Morgan Stanley's role in the lousy start, and one view that Facebook is headed for collapse. (More NASDAQ stories.)

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