Dow Jones faces being sued after the business information provider admitted a computer glitch had misled investors and potentially caused some businesses to lose millions of dollars.
The company has acknowledged that it miscalculated the Dow Jones Industrial Average index for 70 minutes on Tuesday, adding confusion to an already weak market and helping US stocks to their biggest fall in four years.
At 1.50pm on Wednesday in New York, the Dow Jones computer system became overwhelmed by the heavy share trading triggered by plunging stock markets in China and growing economic uncertainty in America.
At 3pm the backup system was activated and the backlog cleared.
Lawyers bringing lawsuits will likely allege that many costly investment decisions were made during the 70 minutes when the Dow Jones was miscalculated in the aftermath of a stock plunge that occurred after the system caught up.
Peter Brown, a partner at law firm Thelen Ried Brown Raysman & Steiner in New York and a specialist in disputes arising from technology glitches, said: 'A credible plaintiff will have to show that they suffered a loss from an investment which was directly key to the Dow Jones industrial average.'
The Dow Jones, which fell by 416.02 points, or 3.29 per cent, on Tuesday, was up 58 points by early afternoon yesterday.
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