Nasdaq Sees Costs From Defending Facebook Suits, Fixing Systems
Nasdaq OMX Group Inc. said it may incur additional expenses in defending lawsuits resulting from its botched initial public offering for Facebook Inc.
The second-largest U.S. equity exchange operator said it may spend more on implementing technical changes and “remedial measures,” according to a regulatory filing today. Nasdaq OMX said it is cooperating with a Securities and Exchange Commission investigation into the handling of the IPO and that the lawsuits are without merit.
Nasdaq has taken steps to repair problems that disadvantaged some members during the May 18 IPO, according to the statement. On July 23, the exchange proposed creating a $62 million fund to reimburse members who suffered losses. UBS AG said earlier this week that its losses exceeded $350 million.
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