Nasdaq OMX Group Inc has been sued by an investor who claimed the exchange operator was negligent in handling orders for Facebook Inc shares following its initial public offering, causing losses for investors.
Phillip Goldberg, a Maryland resident, is seeking class-action status on behalf of all investors who lost money because Nasdaq delayed or otherwise mishandled their buy, sell or cancellation orders for Facebook stock on May 18, the day the social networking giant went public.
A technical glitch delayed Facebook's market debut by roughly half an hour, and later delayed order confirmations.
Nasdaq Chief Executive Robert Greifeld told investors at his company's annual meeting on Tuesday that "clearly we had mistakes in the Facebook listing," but more than 570 million shares were processed on the first day.
Goldberg filed his lawsuit on Tuesday in the U.S. District Court in Manhattan.
The case is Goldberg v. Nasdaq OMX Group Inc et al, U.S. District Court, Southern District of New York, No. 12-04054.
(Reporting By Jonathan Stempel in New York; Editing by Gary Hill)