Trending Topics

UBS Considers Lawsuit After $350 Million in Facebook Losses

The fallout from Facebook’s disastrous IPO is continuing, as the Swiss bank UBS is considering filing a lawsuit against Nasdaq because technical screwups during the opening day Facebook trading caused the bank to lose as much as $350 million.

Nasdaq has declined to comment.

According to reports, the opening was delayed for half an hour and then technical glitches kept many investors from buying shares in the morning or from knowing whether their buy orders were going through, meaning many investors were putting orders through multiple times and wound up holding many more shares than they wanted. In the case of UBS, it placed an order for 1 million shares but repeated the order several times when it didn’t get any confirmations—leaving it with much more stock than intended.

Facebook share prices have plunged in the month since it opened at $38. The stock closed on Friday at $27.10.


Back to top