Nasdaq Filing $62 Million Facebook IPO Screw-Up Compensation Plan

Nasdaq OMX Group Inc (NDAQ) said on Friday it will file a $62 million compensation plan for firms that lost money in the bungled Facebook Inc (FB.O) initial public offering in May.

The fund is $22 million larger than the original fund proposed in June, Nasdaq said. All accommodations will be paid in cash, a departure from the prior plan in which Nasdaq would have partially compensated firms through trading credits or rebates.

The compensation plan will be filed with the Securities and Exchange Commission, Nasdaq said, adding that it expects all payouts to occur within six months.

“We deeply regret the problems encountered during the initial public offering of Facebook,” Nasdaq CEOsaid in a statement. “We failed to meet our own high standards based on our long history of providing outstanding technology to our members and exchange customers.”

Source: Yahoo Finance News

(Source: samospeaks)