Facebook shareholders win compensation following ‘disastrous’ IPO
Facebook shareholders who found themselves out of pocket after investing in the social media giants ‘disastrous’ IPO are to be compensated by the Nasdaq stock exchange.
The exchange has reportedly filed details of a $100m reimbursement package for banks and trading firms who were unable to confirm trades for up to two hours following a computer glitch at launch.
Shares in Facebook’s much hyped stock has since plummeted by more than 30% from its launch level of $38.
That collapse has prompted shareholders to sue Facebook head Mark Zuckerberg, alongside several banks, over allegedly hiding weakened growth forecasts ahead of the launch.