Report: After botched Facebook IPO, Nasdaq to compensate investors

More than two weeks after Facebook’s highly-anticipated, but ultimately flawed initial public offering, the Wall Street Journal is reporting that Nasdaq officials will move Wednesday to compensate investors for the problems that marred the social network’s stock market debut.

The Journal also reports that the losses due to the glitch may top $100 million.

Since its IPO on May 18, Facebook shares have dropped sharply, and some analysts have suggested that further decline is likely.

The lead underwriter on the deal, Morgan Stanley, has come under fire for allegedly disclosing information about Facebook’s revenue stream to only a select group of investors.

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Sarah Halzack is The Washington Post's national retail reporter. She has previously covered the local job market and the business of talent and hiring. She has also served as a Web producer for business and economics news.
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