NASDAQ’s Facebook Faux Pas Spurs Interest by S.E.C., Lawyers


Facebook’s IPO on Friday brought with it problems for NASDAQ.

The exchange’s CEO Robert Greifeld acknowledged that NASDAQ had a host of trading glitches on the day of the IPO, including a foul-up with the trading system’s ability to handle order cancellations.

Now, NASDAQ’s admission of its Facebook faux pas prompted an S.E.C. inquiry, and securities class action lawyers are prospecting for clients.

U.S. Securities and Exchange Commission spokesman John Nester said that the S.E.C. is investigating the “cause” of the trading glitches, and will work with NASDAQ concerning “steps that will be taken to address it.”

One Florida law firm has already issued a press release announcing its investigation of NASDAQ, and any losses incurred by large and small investors alike due to “the inability of your brokerage firm to properly and/or timely execute your trades.”

We’re guessing NASDAQ won’t be inclined to friend the firm, or any disgruntled investors with trading glitches either.

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