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 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.
UBS AG decried a proposal from Nasdaq OMX Group Inc. to make up losses for firms damaged in the Facebook Inc. stock-market debut, joining a growing chorus of Wall Street players that are calling on regulators to reject the exchange operator’s plan.
UBS AG said it took a loss of more than $350 million on the ill-fated Facebook Inc. initial public offering, wiping out nearly half of its second-quarter profit, and it accused Nasdaq OMX Group Inc. of a “gross mishandling” of the stock-market listing.