Nasdaq is still recuperating from the disastrous Facebook’s IPO debut last year, and the final blow comes as the Financial Industry Regulatory Authority has determined the sizeable losses accounting nearly to 42 million dollars.
The compensation plan administrated by Finra, is giving interested parties seven days to agree to the offer and 14 days to submit in writing that they will waive any additional lawsuits against Nasdaq.
According to the New York Post, Facebook’s public debut was marred by technical glitches and many brokers purchasing shares on behalf of clients claimed that they have lost hundreds of millions of dollars due to the glitch. The amount in the Finra plan is 20 million dollars less than Nasdaq’s original offer of 62 million dollars, because certain parties either didn’t participate or didn’t qualify to get money.
The report said that just five months ago, the Securities and Exchange Commission made Nasdaq dole out 10 million dollars in punishment related to the Facebook fiasco, making it the largest fine of an exchange ever. The nightmare from the Facebook fiasco does not seem to end as Nasdaq has lost charge of Twitter’s much-anticipated IPO to rival New York Stock Exchange.