by Christopher Freeburn | March 25, 2013 1:10 pm
The fallout from Facebook’s (NASDAQ:FB) IPO continues.
Nasdaq (NASDAQ:NDAQ) has agreed to pay $62 million in damages to compensation trading firms that lost money when the social media giant went public last year due to technical problems with Nasdaq’s systems. The settlement has been approved by the Securities and Exchange Commission, CNN Money notes.
Citigroup (NYSE:C), Citadel, UBS (NYSE:UBS) and Knight Capital (NYSE:KCG) will receive compensation under the agreement. The firms claim to have lost a total of $500 million due to the trading system problems.
Without SEC approval, the most Nasdaq could have paid out was $3 million. Last year, Nasdaq first offered a $40 million settlement plan, but later increased that.
The plan did not appease UBS, which says it lost $350 million. The bank has described the plan as “inadequate” and has launched an arbitration claim against Nasdaq.
Shares of Citigroup, UBS and Knight Capital all fell more than 1% in Monday midday trading.
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