The New York Post reports that The Financial Industry Regulatory Authority has determined that broker-dealers claiming sizeable losses related to the botched May 18, 2012, public stock sale of Facebook are owed nearly $42m.
Finra, which is administering the plan, is giving interested parties seven days to agree to the offer and 14 days to submit in writing that they’ll waive any additional lawsuits against Nasdaq.
The compensation plan, released Friday, is tied to a litany of technical glitches stemming from Facebook’s notorious initial public offering. Many brokers purchasing shares on behalf of clients claim they lost hundreds of millions of dollars due to Nasdaq systems going haywire.
The amount in the Finra plan is $20m less than Nasdaq’s original offer of $62m, because certain parties either didn’t participate or didn’t qualify to get money.
For example, UBS, the lone holdout to Nasdaq’s pay plan, is still in litigation over the glitch-ridden stock offering. The Swiss bank had claimed that it suffered more than $350m in losses from the IPO.
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