After the Facebook’s IPO, top marketers brought in an action against Facebook and Nasdaq blaiming the social media and IPO organizers in financial problems they have now.
The claims are likely to exceed $100 million, as they and other traders continue to deal with thousands of customer orders, says Reuters. On May 18, when the IPO was launched, Nasdaq experienced a technical glitch that delayed the the Facebook’s debut on the market by 30 minutes. As the stock price dropped, investors and traders suffered significant losses.
Top market investors including Knight Capital, Citadel Securities, UBS AG and Citi’s Automated Trading Desk collectively have lost more than $100 million because of the delay, according to a senior executive at one of the firms. The offering price of Facebook shares was $38 and the first day after the IPO showed the price increase but then it ended at only $33.03. The marketers accuse organizers of not telling that they concealed their real predictions about the shares price. Regulators are now looking into how the IPO was handled. The U.S. Senate Banking Committee is also reviewing the matter.
Meanwhile, Facebook doesn’t stop to unveil improvements and new apps for its users. The social media giant has released a new free iOS app that resembles Instagram recently acquired by Facebook for $1 billion, but it’s known that the new Facebook Camera app was not developed by Instagram’s team, says Mashable.
Additionally, Facebook has rolled out a new feature for brands looking to track their ROI across the social media. The feature that is now available in the old design for Pages shows the percentage of brand page fans who saw as well as liked recent posts. Facebook says that the feature is rolling out for all Brand Page owners “with a slightly updated design.”