Nasdaq’s Total Compensation To Financial Firms For Bungled Facebook IPO: $41.6M

FacebookNasdaqListed650The Financial Industry Regulatory Authority capped the total payout by Nasdaq parent Nasdaq OMX Group to financial firms over the technical difficulties that plagued Facebook’s May 2012 initial public offering at $41.6 million, down from the $62 million the stock exchange initially set aside to compensate affected brokers, Reuters reported.

According to Reuters, Nasdaq said the number was lowered because FINRA found that some brokerage houses that were seeking compensation were ineligible to do so, adding that an unnamed firm, believed to be UBS, opted for arbitration, which was blocked by U.S. District Judge Robert Sweet, who ruled that the bank’s claims did not fall within the scope of the arbitration provision in its services agreement with the exchange.

The $62 million settlement proposal was approved by the Securities and Exchange Commission in March.

Nasdaq also paid a $10 million fine to the SEC related to its mishandling of the social network’s IPO.

Readers: Has this story finally reached its end?

Image courtesy of Shutterstock.

Related Stories
Mediabistro Course

Social Media 201

Social Media 201Starting October 13, Social Media 201 picks up where Social Media 101 left off, to provide you with hands-on instruction for gaining likes, followers, retweets, favorites, pins, and engagement. Social media experts will teach you how to make social media marketing work for your bottom line and achieving your business goals. Register now!