U.S. Regulators Approve NASDAQ Plan to Pay Customers $62 Million For Facebook IPO Losses

by Colonel on March 25, 2013

“U.S. regulators approved a plan by Nasdaq OMX Group Inc. to pay customers as much as $62 million for losses stemming from last year’s bungled Facebook Inc. stock-market debut, though the decision left the door open for Wall Street firms to take further legal action.

The approval of the plan by the Securities and Exchange Commission marks an end to months of uncertainty among brokers over potential relief for losses from the social-networking company’s May 2012 initial public offering.

Wall Street banks are estimated to have lost around $500 million from the delay in the opening of Facebook trading and subsequent confusion over individual trades. …

Switzerland’s UBS AG has said the Facebook debut cost it $356 million, and said in a statement Monday that it intended to recover from Nasdaq “the full extent of our losses.”

” — Jenny Strasburg and Jacob Bunge, Copyright 2013 Dow Jones & Company Inc.

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