Citi Goes After Nasdaq For Its Handling Of The Facebook IPO In This 17-Page Letter

nasdaq zuckerberg

Photo: milkmit/Dylan Love

All of the losers in the Facebook IPO haven’t forgotten about Nasdaq handled the botched offering that day.Nasdaq is planning to partially compensate early investors.

But in the latest chapter of this ongoing saga, Citi blasts the Nasdaq in a new 17-page letter delivered to the SEC.

Specifically, they argue that the Nasdaq’s plan to compensate investors is insufficient.

From the letter:

Market participants suffered hundreds of millions of dollars of losses as a result of Nasdaq’s profit-driven conduct prior to and during the Facebook IPO, not as a result of protected regulatory activity by Nasdaq, or routine system failures,

Nasdaq was grossly negligent in its handling of the Facebook I.P.O., and as such, Citi should be entitled to recover all of its losses attributable to Nasdaq’s gross negligence, not just a very small fraction as is currently the case.

Citi’s case is detailed and comprehensive.

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