Nasdaq OMX Group Inc. plans to set aside $10 million in anticipation of settling a regulatory investigation into its handling of Facebook Inc.’s stock-market debut, according to people familiar with Nasdaq internal discussions.
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.
Nasdaq OMX Group Inc. is in preliminary talks with U.S. securities regulators over a potential settlement related to its botched handling of last year’s Facebook Inc. stock-market debut, according to people with knowledge of the discussions.
Facebook stock saw a 10 percent surge on Wednesday morning, up to a high of $22.09, as nearly 800 million employee shares became eligible for trading for the first time. It was widely expected that the stock would fall with the possibility of many employees finally being able to cash out.
Facebook Inc. executives including Sheryl Sandberg have sold a portion of their stock in the social site as restrictions on insider sales at the company have lapsed, according to filings with the Securities & Exchange Commission.