Nasdaq To Pay Traders $42M For Facebook IPO Claims

Law360, New York (October 25, 2013, 4:10 PM EDT) -- Nasdaq OMX Group Inc. on Friday said that it expects to pay about $41.6 million to traders who lost money because of technical glitches with Facebook Inc.'s May 2012 initial public offering, a significantly lower amount than forecast.

In a letter to traders, Nasdaq said a probe by the Financial Industry Regulatory Authority's Market Regulations Department determined that because one significant trader opted to go to arbitration rather than wait for a claims determination and several other claims were deemed ineligible, the stock exchange would only...
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