24 August 2017
Visit http://response.ncr.com

Judge rejects Nasdaq OMX bid to dismiss Facebook IPO lawsuits

17 December 2013  |  2089 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  |  5866 views  |  1 comments | 1 tweets | 1 linkedin
Nasdaq OMX defends $62m Facebook compensation package

Nasdaq OMX defends $62m Facebook compensation package

20 September 2012  |  5665 views  |  0 comments
Citi slams Nasdaq OMX over Facebook IPO compensation

Citi slams Nasdaq OMX over Facebook IPO compensation

23 August 2012  |  5418 views  |  0 comments
Nasdaq OMX offers brokers $40m over Facebook fiasco

Nasdaq OMX offers brokers $40m over Facebook fiasco

07 June 2012  |  5431 views  |  0 comments
Facebook IPO fallout continues as investor sues Nasdaq OMX

Facebook IPO fallout continues as investor sues Nasdaq OMX

23 May 2012  |  6131 views  |  0 comments
Facebook float tests Nasdaq resilience as stock opening delayed

Facebook float tests Nasdaq resilience as stock opening delayed

18 May 2012  |  6368 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.vasco.comvisit www.dorsum.euvisit www.worldpaymentsreport.com

Top topics

Most viewed Most shared
Rabobank constructs physical model to understand IT architectureRabobank constructs physical model to unde...
21557 views comments | 45 tweets | 89 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
12120 views comments | 22 tweets | 35 linkedin
Australia regulates digital currenciesAustralia regulates digital currencies
11563 views comments | 21 tweets | 35 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
11310 views comments | 10 tweets | 8 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
10930 views 0 | 7 tweets | 1 linkedin

Featured job

Competitive base and bonus, plus benefits
London, UK

Find your next job