

Investors sue Nasdaq and Facebook over IPO - anigbrowl
http://www.reuters.com/article/2012/05/23/us-nasdaq-facebook-lawsuit-idUSBRE84M02O20120523

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anigbrowl
The suit against Nasdaq is fascinating in principle. In brief, trading started
nearly an hour late and there were difficulties with trade confirmation. Now,
the sinking price is also a reflection of a) weaker public demand than
underwriters may have anticipated and b) disquiet over dubious
accounting/disclosure in the runup to the IPO. But clearly, delays and
stumbles right at the commencement of trading took a lot of air out of the
balloon.

How to value this, though, is a very difficult question that will most likely
be left to a jury. Assuming NASDAQ were found to be negligent, it could be
messy; Facebook's market cap has gone down by $20 billion since it began
trading (or $39bn peak-to-trough). Nasdaq's Market cap is only $3 billion.

