Finkelstein Thompson LLP, Lovell Stewart Halebian Jacobson LLP and Zamansky & Associates, LLC announce the filing of an Amended Complaint on behalf of retail investors in the Facebook Initial Public Offering (IPO) against NASDAQ OMX Group, Inc. to recover losses incurred in the botched May 18, 2012 IPO. The case seeks to compensate the ultimate retail stock investors, the "Moms and Pops" of America who wanted to participate in a little piece of the historic Facebook offering. These retail investors may have lost in the aggregate hundreds of millions of dollars through no fault of their own.
Last week, NASDAQ's CEO offered an "apology" to the "industry" for technical problems that marred Facebook's highly anticipated stock offering last month. NASDAQ offered to compensate top Wall Street brokerage firms, such as Knight Capital, Citadel and UBS, a total of $40 million (mostly in future "trading credits") for the firms' losses, but no compensation would flow to retail customers who lost money on Facebook shares as a result of NASDAQ malfeasance. The Compensation Plan is subject to approval by the Securities & Exchange Commission (SEC).
The plaintiffs will urge the SEC to reject the NASDAQ Compensation Plan as wholly inadequate insofar as it seeks to compensate only the "industry" and leaves the retail investors-customers holding the bag.
By ignoring the plight of the retail customer, who got caught in the crossfire, and proposing to compensate only industry insiders, NASDAQ will be contributing to an even greater loss of public confidence in the integrity of the markets and the IPO process than has already resulted from its negligent mishandling of the Facebook IPO. The SEC's mission is investor protection, and it should reject NASDAQ's plan as anti-investor.
The case is entitled Goldberg, et al.v. NASDAQ, Index No.12-cv-4054, pending in the United States District Court for the Southern District of New York before Judge Robert Sweet. The plaintiffs are represented by the law firms of Finkelstein Thompson LLP, Lovell Stewart Halebian Jacobson LLP and Zamansky & Associates, LLC.
Numerous Facebook investors continue to contact our firms regarding their issues with NASDAQ.
A copy of the Complaint can be found at www.finkelsteinthompson.com, www.zamansky.comor www.lshllp.com.
Any questions should be addressed to:
Finkelstein Thompson LLP
Douglas G. Thompson, Esq., (212) 337-8000
Lovell Stewart Halebian Jacobson LLP
Victor E. Stewart, (212) 608-1900
Zamansky & Associates, LLC
Jacob H. Zamansky, Esq., (212) 742-1414