26 February 2018
visit www.ebaday.com

Judge rejects Nasdaq OMX bid to dismiss Facebook IPO lawsuits

17 December 2013  |  2142 views  |  0 NASDAQ Trading screen

A US judge has denied Nasdaq OMX's request to dismiss lawsuits filed by investors who say that they lost money thanks to the exchange operator's botched handling of the Facebook IPO.

US District Judge Robert Sweet accepted Nasdaq OMX's argument that as a 'self-regulatory organisation' (SRO) it is immune from some claims, including those relating to its decision to stop the IPO last May.

However, he decided not to dismiss negligence claims over the design, testing and touting of the exchange's systems, including that stress tests were not carried out, according to Reuters.

Plaintiffs allege that Nasdaq failed to share enough information, causing them to lose money through failed trade executions and possible artificial downward pressure on the stock's price.

In March Nasdaq OMX agreed to settle SEC charges - and pay a $10 million fine - without admitting or denying them. It has also put together a $62 million compensation package for affected firms.
KeywordsLEGAL

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Nasdaq OMX hit with record $10m fine over Facebook IPO fiasco

Nasdaq OMX hit with record $10m fine over Facebook IPO fiasco

30 May 2013  |  6009 views  |  1 comments | 1 tweets | 1 linkedin
Nasdaq OMX defends $62m Facebook compensation package

Nasdaq OMX defends $62m Facebook compensation package

20 September 2012  |  5767 views  |  0 comments
Citi slams Nasdaq OMX over Facebook IPO compensation

Citi slams Nasdaq OMX over Facebook IPO compensation

23 August 2012  |  5530 views  |  0 comments
Nasdaq OMX offers brokers $40m over Facebook fiasco

Nasdaq OMX offers brokers $40m over Facebook fiasco

07 June 2012  |  5535 views  |  0 comments
Facebook IPO fallout continues as investor sues Nasdaq OMX

Facebook IPO fallout continues as investor sues Nasdaq OMX

23 May 2012  |  6224 views  |  0 comments
Facebook float tests Nasdaq resilience as stock opening delayed

Facebook float tests Nasdaq resilience as stock opening delayed

18 May 2012  |  6465 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit https://www.capgemini.comvisit www.ebaday.comvisit www.nextgenbanking.co.uk

Top topics

Most viewed Most shared
Ripple makes new connections to emerging marketsRipple makes new connections to emerging m...
12856 views comments | 16 tweets | 10 linkedin
hands typing furiouslySome Interesting Applications Of The Inter...
10970 views 4 | 9 tweets | 1 linkedin
Basel Committee outlines disruptive fintech scenariosBasel Committee outlines disruptive fintec...
9531 views comments | 15 tweets | 27 linkedin
Investment Association sets up fintech accelerator for asset managersInvestment Association sets up fintech acc...
8882 views comments | 19 tweets | 10 linkedin
R3 creates Legal Centre of Excellence for blockchain technolgyR3 creates Legal Centre of Excellence for...
8818 views comments | 11 tweets | 14 linkedin

Featured job

Competitive
Hong Kong, Asia-Pacific

Find your next job