nasdaq

Nasdaq gets OK to pay out $62M for botched Facebook IPO

The Securities and Exchange Commission today approved Nasdaq OMX Group's plans to distribute as much as $62 million in cash to investors involved in Facebook's botched IPO.

The stock exchange operator will give funds to brokerages that lost money due to Nasdaq glitches that delayed the May 18 debut of Facebook shares by half an hour.

After the stock finally started trading, would-be investors complained they were not able to confirm changes or cancellations made to Facebook orders starting as early as 4:30 a.m. PT. Later on in the morning, some traders said they had not … Read more

Facebook served new lawsuit over bungled IPO

Just when it seemed like the Facebook shareholder lawsuits were easing up, the social network has been hit with a new IPO suit.

Investor Gaye Jones filed a new case against Facebook Chief Executive Mark Zuckerberg and the company's underwriters today, according to Reuters. Like several other investors that have sued Facebook, Jones claims that the social network knew about its weak revenue trends before its IPO but failed to disclose this information.

"The defendants were unjustly enriched because they realized enormous profits and financial benefits from the IPO, despite knowing that reduced revenue and earnings forecasts for … Read more

Nasdaq said to be settling with SEC over Facebook's IPO flop

Dozens of lawsuits and investigations emerged after Facebook's initial public offering on the Nasdaq Stock Market last year. One investigation, initiated by the U.S. Securities and Exchange Commission, focused on technical errors in Nasdaq's system that inadvertently delayed trading that first day.

Now, word has it that Nasdaq may be able to settle the debacle with the federal regulators, according to the Wall Street Journal.

Sources familiar with the matter have told the Journal that Nasdaq has been in preliminary settlement talks with the SEC. If the two sides do make a deal, it will most likely … Read more

Netflix, RIM, others get boot from key Nasdaq stock index

The shakeup that landed Facebook on Nasdaq's top 100 list is also leading to the departure of other prominent tech players.

Facebook was added last week to the Nasdaq 100, the collection of the largest 100 nonfinancial companies trading on the stock exchange. Facebook's addition to the index came with the departure of IT consulting company Infosys, which is moving over to the New York Stock Exchange.

However, Infosys is not the only tech company leaving the index. A handful of other prominent tech players, including Netflix and beleaguered handset maker Research In Motion will be dropped from … Read more

Apple stock slouches toward $500, near February lows

Even with Apple's top product arriving in more stores around the world, and its last products of the year shipping out, Wall Street's not so hot on the company today.

Shares of Apple closed at $509.79, down $19.90, or 3.76 percent, on Friday. That's near where the stock was trading in February, ahead of the journey that would take it beyond its high of $702 in September.

Of course everyone's looking for explanations behind the slump, a behavior that's become regular in the nearly three month span since the iPhone 5 went … Read more

Plaintiffs named in suit over Facebook's troubled IPO

A U.S. judge has named the lead plaintiffs in the dozens of class-action lawsuits brought against Facebook over its bungled initial public offering, according to Reuters.

District Judge Robert Sweet has been assigned 42 cases against the social network, which he consolidated in October. Today he picked a handful of plaintiffs to head the suits. The lead plaintiffs include several state pension funds, such as the North Carolina Retirement Systems, Arkansas Teacher Retirement System, the Fresno County Employees' Retirement Association, and Banyan Capital Master Fund. Collectively, this group claims a combined loss of $7.1 million.

"Its members … Read more

Facebook stock likely to get boost from inclusion in Nasdaq 100

Facebook's stock may be getting another boost soon, thanks to Nasdaq.

The social-networking company is set to replace Infosys on the Nasdaq 100, the collection of the largest 100 nonfinancial companies trading on the stock exchange. The company will be added to the index on December 12, according to CNBC, roughly seven months after its difficult IPO.

In addition to being an apparent nod toward the company's growing influence in the tech community, the move is also expected to lead to a stock price uptick as index fund managers snap up the stock to ensure that their fund … Read more

Facebook insiders could sell 773 million shares Wednesday

The largest set of Facebook stock shares available since May, when the company went public, could hit the market on Wednesday as the social network's employees are given the green light to sell off 773 million shares.

Wednesday marks the expiration of another "lockup" period, which means early investors and Facebook employees, including those who joined before 2011, will be able to sell off 773 million common shares, plus 31 million in restricted stock units.

The previous lockup expired at the end of October, and that fresh infusion of stock into the open market left the share … Read more

SEC finds Facebook didn't hold back info from investors -- report

The Securities and Exchange Commission didn't find any evidence that Facebook withheld pertinent information from investors prior to its initial public offering, Bloomberg reported today.

The commission began investigating the social network's initial public offering, or IPO, in May, after Facebook's stock dropped. The stock still hasn't recovered from that day, and is currently trading at around half of its $38 IPO price.

While the investigation isn't over, the commission has determined that Facebook did not act wrongly, an unnamed source told Bloomberg. The SEC is still looking at whether or not retail investors lost … Read more