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    • June 12th, 2012 03:49 PM

    UBS is planning to sue Nasdaq

    It is said that the Swiss bank UBS AG is preparing a suit against the American stock market Nasdaq charging it with the infliction of damage to the bank equal to about $350 million.

    The Wall Street Journal reported that the Swiss bank UBS AG is going to file a claim against one of the leading American stock markets Nasdaq OMX Group due to the damages the bank sustained during the initial public offering (IPO) of the world’s No1 social networking site Facebook.

    According to CNBC, the total bank’s losses reached approximately $350 million. Earlier, it was said that on the whole investors had lost something about $100 million. However, the financial services firm Knight Capital Group assures that the total amount of damages is $200 million.

    Karina Byrne, spokeswoman of UBS bank, confirmed that the bank really lost out because of the technical glitch occurred at Nasdaq during Facebook’s IPO, but refused to tell the total amount of the bank’s damages. Currently, UBS is looking for the most appropriate ways to minimize its losses and also pondering about filing a claim against Nasdaq.

    Investors that participated in Facebook’s IPO at Nasdaq are extremely discontented with the way the most pending event was organized. It is reported that the bidding process started with half an hour delay. The hold was conditioned upon technical glitch. There were so many collusive bids that the stock market’s computer system didn’t get through and crapped out. That’s why a lot of traders couldn’t make any changes to their claims or cancel them.

    In order to prove itself in the right the stock market Nasdaq promised partially compensate for losses to traders and investors and provide clients, who suffered from the glitch, with discounts. The stock has even unveiled $40 million for this.

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