U.S. District Judge Robert Sweet in Manhattan named the lead plaintiffs Thursday in securities lawsuits against Facebook and against Nasdaq parent Nasdaq OMX Group related to the social network’s bungled May 18 initial public offering.
The speculation of earlier this week was confirmed: Facebook will be added to the Nasdaq 100 Index next week, as Nasdaq parent Nasdaq OMX Group announced that the social network’s stock will replace Infosys on the index before the start of trading Dec. 12.
Facebook is likely the next company in line to be added to the Nasdaq 100 Index, as CNBC pointed out that the social network is currently the company with the largest market valuation listed on Nasdaq that is not part of the index, and adding that a spot will open Dec. 12, when information-technology-services company Infosys leaves Nasdaq for the New York Stock Exchange.
Investor Uma Swaminathan of East Brunswick, N.J., filed a claim with the arbitration unit of the Financial Industry Regulatory Authority in July, regarding Morgan Stanley’s role in Facebook’s botched initial public offering. However, there’s one problem: Morgan Stanley said Swaminathan was not one of its customers.
The Securities and Exchange Commission announced Monday that it will more closely examine the plan by Nasdaq to shell out $62 million to compensate firms that were affected by the technical issues that marred Facebook’s May 18 initial public offering.
All of the lawsuits over Facebook’s bungled initial public offering are going to make a brand-new start of it in old New York, as a panel of federal judges ruled Thursday that cased filed throughout the country are to be transferred to U.S. District Judge Robert Sweet in Manhattan, according to reports.
Embattled stock exchange Nasdaq countered objections to its plan to compensate firms affected by the technical issues that marred Facebook’s initial public offering, saying in a letter to the Securities and Exchange Commission earlier this week that none of the points brought up by critics of the plan was enough for the SEC to reject it.
Nasdaq announced that Facebook will not yet be included in its Nasdaq 100 Index, but the news was not all bad for the social network, as it will be added to the Nasdaq Q-50 Index Sept. 24, bringing it one step closer to the Nasdaq 100.
Add UBS to the list of financial firms that are unhappy with the $62 million settlement proposal by Nasdaq parent Nasdaq OMX Group to compensate firms affected by the technical issues that marred Facebook’s initial public offering, as it followed the lead of Citigroup in sending a long letter to the Securities and Exchange Commission.
While Citadel Securities may have been content with the $62 million settlement proposal by Nasdaq parent Nasdaq OMX Group to compensate firms affected by the technical issues that marred Facebook’s initial public offering, the reaction from Citigroup was quite the opposite.