Feeds

Widow lost savings in Facebook stock, sues all concerned for $1.9m

It says 'bumwad from Bank of Toyland' right on it

Providing a secure and efficient Helpdesk

Global financial services firm Morgan Stanley is trying to get its name removed from the securities case of a New Jersey widow who lost her life savings in the Facebook IPOcalypse.

Uma Swaminathan filed an arbitration complaint with the Financial Industry Regulatory Authority (FINRA) looking for $1.9m compensation for the trading debacle. She named Morgan Stanley, Vanguard Financial Group, the NASDAQ exchange and its parent NASDAQ OMX and Facebook in her complaint, Reuters reported.

Swaminathan claims that Morgan Stanley, as the lead underwriter for the IPO, withheld the information that it was downgrading its outlook on Facebook. But the financial firm says she's not one of its customers, and that since she bought the shares through Vanguard, the arbitration has nothing to do with Morgan. The firm filed with a New York court to get its name off the case.

Neither Facebook nor NASDAQ are licensed by the financial authorities, so they are not required to take part in the arbitration. If Morgan Stanley gets out of the case, it could signal to investors that FINRA can't help them with Facebook-related complaints.

Facebook's debut in May was fraught with technical glitches, leaving investors unsure how much stock they'd bought and sold and at what price.

Swaminathan also blames her own brokerage as she claims that Vanguard didn't cancel her order for shares when she asked it to. In Morgan Stanley's case, Swaminathan said the firm informed only its own "privileged clients" that it wasn't as sure about Facebook as it had been, then issued more shares and raised the price to "suck more suckers into the stock".

She said she was "trapped" in the stock until Monday morning, when it had fallen to around $8 or $9 a share. She claims $1.9m, including $105,000 in compensatory damages, $500,000 punitive damages, $1m for "pain and suffering" and $315,000 in treble damages, awarded in instances of fraud. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Heavy VPN users are probably pirates, says BBC
And ISPs should nab 'em on our behalf
Former Bitcoin Foundation chair pleads guilty to money-laundering charge
Charlie Shrem plea deal could still get him five YEARS in chokey
NORKS ban Wi-Fi and satellite internet at embassies
Crackdown on tardy diplomatic sysadmins providing accidental unfiltered internet access
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.