Nasdaq OMX Group Inc. set aside $31 million to settle litigation stemming from the botched listing of Facebook Inc. in 2012.
The market operator created the reserve to meet the estimated cost of settling class-action litigation arising from Facebook’s initial public offering, it said Thursday in a filing. In the Facebook event, Nasdaq got the listing, but its software delayed the opening trade.
Nasdaq Stock Market member firms lost money in Facebook’s public debut after the computer matching the first trade went into a loop. The New York-based company was fined $10 million by the U.S. Securities and Exchange Commission.
Nasdaq’s reserve will also cover the cost of re-opening its “voluntary accommodation program” and resolve claims from UBS Securities, the company said. Some or all of the money used for the reserve will be reimbursed by insurance coverage.