Nasdaq payout cleared in Facebook IPO

The Nasdaq on Monday had the backing of US regulators who approved the stock exchange’s latest plan to compensate investors for the botched debut of Facebook shares last year.

By (Agencies)

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Published: Wed 27 Mar 2013, 10:29 PM

Last updated: Fri 3 Apr 2015, 3:41 AM

Despite concerns expressed by some investors, the US Securities and Exchange Commission endorsed Nasdaq’s proposal to amend its rules to create a $62 million pool of cash to pay out claims related to the Facebook IPO, documents available online showed.

“It is therefore ordered that the proposed rule change be, and hereby is, approved,” SEC deputy secretary Kevin O’Neill said in a notice available at the commission’s website.

The SEC noted in its order that investors unhappy with the Nasdaq compensation plan could opt not to file claims with the regulator and seek other remedies, such as taking their cases to civil court.



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