facebook
twitter
rss
account
search
search
 

Nasdaq could face suits over Facebook IPO

June 7, 2012 at 1:31 AM   |   Comments

| License Photo
NEW YORK, June 7 (UPI) -- Knight Capital Group, a Jersey City, N.J., securities firm, said Wednesday it is considering suing over the bungled Facebook initial public offering.

The company, headquartered in Jersey City, estimated it lost $35 million due to problems that delayed trade confirmations for as long as 2 hours, the Los Angeles Times reported Wednesday.

Nasdaq OMX Group Inc. presented a plan Wednesday to provide a total of $40 million in compensation to all trading firms involved that Knight called "simply unacceptable."

Losses overall have been estimated at $100 million. The Nasdaq plan includes only $13.7 million in direct compensation with the rest taking the form of trading discounts, which has upset the rival New York Stock Exchange.

The U.S. Securities and Exchange Commission was investigating the May 18 IPO, sources told the Times.

"We continue to review the matter and have drawn no conclusions," a spokesman, John Nester said.

The price of Facebook shares has dropped about one-third since the IPO.

© 2012 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Navy tests MQ-8C unmanned helos Navy tests MQ-8C unmanned helos
2
Europe must drop the euro, Germany abandon mercantilism Europe must drop the euro, Germany abandon mercantilism
3
Harris selected for geospatial data products Harris selected for geospatial data products
4
Sweden plans to replace its Defense and Security Export Agency Sweden plans to replace its Defense and Security Export Agency
5
Throwback Thursday: Facebook launches old-school 'Rooms' app Throwback Thursday: Facebook launches old-school 'Rooms' app
Trending News
Around the Web
x
Feedback