The Nasdaq OMX Group was sued on Tuesday by Maryland investor Phillip Goldberg who claims in his lawsuit that the exchanged negligent handling of the Facebook IPO during opening day trading caused losses for investors.
Goldberg is seeking class-action status on behalf of all investors who lost money after Facebook trading was delayed and mishandled when buy, sell and cancellation orders were placed with the exchange for Facebook’s May 18 IPO.
Nasdaq suffered a technical glitch during the Facebook IPO forced a half hour delay in trading and later in the day order confirmations were delayed.
Following the exchanges annual meeting on Tuesday Chief Executive Robert Greifeld says of Facebook’s IPO, “clearly we had mistakes in the Facebook listing,” but more than 570 million shares were processed on the first day.”
The lawsuit was filed in U.S. District Court in Manhattan and can be found under the filing name; Goldberg v. Nasdaq OMX Group Inc et al, U.S. District Court, Southern District of New York, No. 12-04054. Goldberg v. Nasdaq OMX Group Inc et al, U.S. District Court, Southern District of New York, No. 12-04054.