The 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.
Nasdaq OMX Group
Facebook provided an update on ongoing legal proceedings in the Form 10-Q it filed with the Securities and Exchange Commission Thursday, including the lawsuit filed against the company and Co-Founder and CEO Mark Zuckerberg by Paul Ceglia, and various actions related to its initial public offering.
Nasdaq parent company Nasdaq OMX Group filed a motion with the U.S. District Court for the Southern District of New York seeking dismissal of a lawsuit by investors and trading firms related to the exchange’s technical issues during Facebook’s initial public offering.
Nasdaq CEO Robert Greifeld and Executive Vice President of Global Technology Solutions Anna Ewing saw their 2012 annual bonus payments slashed due to the stock exchange’s mishandling of Facebook’s initial public offering last May 18.
Citigroup will attempt to recoup some of the $20 million or so it claims to have lost during Facebook’s botched initial public offering last May 18 by filing a claim for compensation from Nasdaq parent Nasdaq OMX Group, according to Dow Jones Newswires.
The Securities and Exchange Commission Monday approved a revised $62 million settlement by Nasdaq parent Nasdaq OMX Group over technical issues that marred Facebook’s May 18 initial public offering, Reuters reported.
U.S. District Judge Robert Sweet in Manhattan named the lead plaintiffs Thursday in securities lawsuits against Facebook and against Nasdaq parent Nasdaq OMX Group related to the social network’s bungled May 18 initial public offering.
The speculation of earlier this week was confirmed: Facebook will be added to the Nasdaq 100 Index next week, as Nasdaq parent Nasdaq OMX Group announced that the social network’s stock will replace Infosys on the index before the start of trading Dec. 12.
Investor Uma Swaminathan of East Brunswick, N.J., filed a claim with the arbitration unit of the Financial Industry Regulatory Authority in July, regarding Morgan Stanley’s role in Facebook’s botched initial public offering. However, there’s one problem: Morgan Stanley said Swaminathan was not one of its customers.
Add UBS to the list of financial firms that are unhappy with the $62 million settlement proposal by Nasdaq parent Nasdaq OMX Group to compensate firms affected by the technical issues that marred Facebook’s initial public offering, as it followed the lead of Citigroup in sending a long letter to the Securities and Exchange Commission.