* Nasdaq was negligent in handling Facebook orders, claims
* Nasdaq CEO says mistakes were made in Facebook listing
* Facebook's registration, prospectus materially false-2nd
* Facebook's shares down more than 18 percent vs IPO price
(Adds second lawsuit against Facebook)
May 22 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
In addition, a different civil lawsuit was filed against
Facebook, Mark Zuckerberg, IPO underwriters Morgan Stanley & Co
and others alleging violations of securities laws.
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 company 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.
Separately, investor Darryl Lazar filed a proposed
class-action lawsuit in a California state court, alleging that
Facebook's registration and prospectus were materially false,
according to a statement from plaintiff law firm Glancy Binkow &
Reuters reported late on Monday that the consumer Internet
analyst at lead underwriter Morgan Stanley cut his revenue
forecasts for Facebook in the days before the offering,
information that may not have reached many investors before the
stock was listed.
Representatives from Facebook and Morgan Stanley could not
immediately be reached for comment on the securities
Facebook shares sank on Monday and Tuesday -- their second
and third days of trading -- to end at $31, more than 18 percent
below the initial public offering price of $38.
The Nasdaq case is Goldberg v. Nasdaq OMX Group Inc et al,
U.S. District Court, Southern District of New York, No.
(Reporting By Jonathan Stempel in New York; Editing by Gary
Hill and Muralikumar Anantharaman)