Apparently, it wasn’t just the little guy.
Knight Capital Group (KCG) this afternoon reported in an 8K filing with the Securities & Exchange Commission that the fall in Facebook‘s (FB) stock price since its IPO last Friday has cost the firm from $30 million to $35 million.
On May 18, 2012, Facebook, Inc. (“Facebook”) launched an initial public offering through The NASDAQ Stock Market (“NASDAQ”). As has been well- publicized, there were numerous issues and problems at NASDAQ relating to the trading of Facebook. Some market participants, including the Company, suffered sizable losses. The Company estimates its total pre-tax loss related to the events associated with the trading of Facebook to be in the range of $30 to $35 million. The Company has submitted claims for financial accommodation from NASDAQ. The Company is also evaluating all remedies available under law. There are no assurances that the Company will be able to recover any of its losses resulting from the numerous issues and problems at NASDAQ relating to the trading of Facebook. As a result of this loss, the Company’s second quarter results of operations will be adversely impacted.
Facebook shares today closed up $1 at $32, still 16% down from the $38 offer price.
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