The Nasdaq has begun its process of issuing compensation to Facebook investors after the stock exchange’s technical issues botched the first half hour of the social network’s trading on IPO day.
Facebook went public on May 18, to a faulty start, when the Nasdaq’s computerized system hiccuped and left investors with trades in limbo. Those investors didn’t hear if their trades had been confirmed until hours later, resulting in what some are saying is up to $100 million in damages. Four days following the IPO, one investor filed a lawsuit against the Nasdaq for the morning’s issues. The Nasdaq is trying to make good on its failure by issuing compensation to those who were affected, according to the Wall Street Journal.
The Journal reports that the Nasdaq will issue its plan to compensate to the Securities and Exchange Commissions on Wednesday.
Facebook, frustrated with the events on May 18, is rumored to be considering a switch from the Nasdaq exchange to the New York Stock Exchange. The company’s stock has not fared well since its opening day, either. It was priced at $38 for its IPO and closed today at $25.87, only cents above its 52-week low of $25.75.
Other tech stocks were brought down by Facebook’s poor performance, including social gaming company Zynga. Indeed, Zynga’s stocks had to be halted due to a sell-off that brought the company’s share price down 13 percent. In recent days, online travel organizer Kayak delayed its own IPO to avoid the “Facebook effect.”
via The Wall Street Journal; Image via Facebook’s livestream on IPO day