Fidelity Dealing With “Thousands” Of Broker Complaints Over Facebook IPO

Facebook IPO complaints at Fidelity

Fidelity Investments announced on Friday that it is dealing with “thousands” of complaints from brokerage clients over trading issues caused by Nasdaq’s first day glitches in the trading of Facebook IPO shares.

While Facebook’s IPO launched one week ago Fidelity says investors are still trying to sort out issues that caused them to buy Facebook shares at prices other than what they believed they were buying.

A Fidelity spokesman said of the situation:

“On behalf of our customers, Fidelity’s senior management has been working with the regulators, market makers and NASDAQ to represent all of our customer’s trading issues from May 18, and we will continue to do so until we are confident that NASDAQ has done everything it can to mitigate the impact to our customers.”

A trading alert issued by the exchange on Monday morning says Nasdaq had all orders, executed or not, returned to member firms by 1:50 p.m. EDT on Friday.

Fidelity, which runs a large brokerage firm of its own had sent a special notice to customers, letting them know that Facebook shares had been executed but that delays in status updates were being experienced.

In its notice Fidelity wrote:

“We realize that some customers still have questions about how these delays may have affected their trading activity,” Fidelity said in the notice.

“We understand that Nasdaq is working with federal regulators to determine what, if any, accommodation might be made. However, customers should assume that any shares of Facebook stock currently credited to their accounts are owned by them and available for trading.”

In the meantime Fidelity has not decided to file a lawsuit but noted:

“We will continue to work with the industry to get NASDAQ to come to a resolution that addresses the concerns of our customers,” Fidelity said in the notice.

In the meantime Facebook shares on Thursday gained $.01 to close at $32.01.



Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.