Nasdaq OMX Group Inc. : Facebook Inc. Securities Litigation
On or around 01/19/2017 (Other)
Filing Date: July 23, 2012
According to the Amended Complaint, this action arises out of Defendants' materially false and misleading statements and omissions of material fact concerning the purported capabilities of NASDAQ's technology and electronic trading platforms to accurately and reliably execute trade orders. In connection with Facebook's IPO, NASDAQ's wrongdoing caused the NASDAQ Claimant Group and other Class Members to, among other things: (i) execute open market transactions in Facebook common shares at erroneous prices; (ii) suffer market delays in trading; (iii) receive failed executions and confirmations of trades and cancellations as well as duplicate and erroneously routed trade orders; and (iv) experience similar and related systematic failures of the NASDAQ trading platform, thereby suffering enormous financial losses.
As further detailed herein, in an effort to capitalize on the largest IPO in the history of the NASDAQ stock exchange, Defendants abandoned and/or recklessly disregarded proper internal controls and testing procedures which would have otherwise ensured that its systems could handle the record-setting trading volume in connection with Facebook's IPO.
As is now known, in the weeks leading up to the most anticipated IPO in NASDAQ's history, Defendants knew or recklessly disregarded that NASDAQ's technology and trading platforms were experiencing significant problems. According to reports, NASDAQ was conducting volume testing demonstrating internally that its trading platforms were plagued by technical glitches in the days leading up to, and including, the May 18, 2012 IPO. Despite these known problems, it is now clear that NASDAQ "opted to roll the dice" with the world's largest IPO by promoting its purported ability and superiority over other exchanges rather than admitting its systems were not up to the task.
An amended Complaint was filed on August 3, 2012.
Company & Securities Information
Defendant: Facebook Inc.
Industry: Computer Services
Headquarters: United States
Ticker Symbol: FB
Company Market: NASDAQ
Market Status: Public (Listed)
About the Company & Securities Data
"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.
In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
First Identified Complaint
First New York Securities LLC, et al. v. Nasdaq OMX Group Inc., et al.