Nasdaq Chief Executive Robert Greifeld blamed the technical issues that affected Facebook’s initial public offering on “arrogance” and “overconfidence” while speaking at a conference of corporate directors at Stanford University’s Law School Sunday.
Facebook will reportedly file a motion, as early as Friday, to consolidate all of the lawsuits against the company related to its troubled initial public offering, and the motion is expected to include lead underwriters Morgan Stanley, Goldman Sachs, and J.P. Morgan.
It’s more than the $13.7 million Nasdaq originally proposed, but far less than the $100 million-plus traders and investors claimed they lost due to the exchange’s handling of Facebook’s initial public offering: Nasdaq filed plans with the Securities and Exchange Commission Wednesday detailing a one-time payout of some $40 million to compensate affected firms, according to published reports.
The embattled Nasdaq stock exchange will make its initial filing with the Securities and Exchange Commission Wednesday regarding steps it will take to compensate investors who lost money on Facebook’s initial public offering due to technical issues, according to reports.
Morgan Stanley Chairman and Chief Executive Officer James Gorman appeared on CNBC’s “Closing Bell with Maria Bartiromo” Thursday afternoon, reiterating that his company did nothing improper in the run-up to Facebook’s initial public offering and urging patience with the social network’s slumping stock, saying, “The story isn’t over. Again, we are at day eight here. Give this a little bit of time.”
Kleiner Perkins Caufield & Byers Partner Mary Meeker pinned most of the blame for the poor performance of Facebook’s initial public offering on the technical issues experienced by Nasdaq, calling the IPO a “financial tsunami” while speaking at AllThingsD’s D10 Conference Wednesday.