Photo: AP Images
When people talk about Wall Street taking advantage of unsavvy individual investors, the shorthand is “widows and orphans.”Well, here’s the case of an actual widow striking back at Wall Street.
An investor, Uma Swaminathan of East Brunswick, New Jersey, is trying to get restitution for the money she lost in the Facebook IPO.
According to Reuters, Swaminathan filed a complaint with the Financial Industry Regulatory Authority requesting arbitration. In the complaint, she stated that she’s a retired teacher and a widow and had invested her life savings in Facebook’s IPO.
She asked her broker, Vanguard, to buy 6,200 shares, then tried to cancel the order when Facebook did not begin trading as expected.
Swaminathan is seeking $1.9 million in damages.
Morgan Stanley filed a complaint in court yesterday asking to be removed from Swaminathan’s arbitration action, since she didn’t have an account with the firm.
Besides Morgan Stanley, which led Facebook’s IPO, Swaminathan’s complaint also named Vanguard, Facebook, and the Nasdaq exchange.
Reuters said Facebook, Morgan Stanley, and Vanguard either declined to comment or didn’t respond.
We sent Swaminathan a message via Facebook and haven’t heard back yet, but we’ll let you know if we find out more.
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