Would Facebook Inc (NASDAQ:FB) Pay A Penalty Of $41.6M?
The Financial Industry regulatory Authority (FINRA) has completed assessing the claims that are related to the messed-up Facebook Inc (NASDAQ:FB) Initial Public offering. The regulatory body says there is $41.6M in valid claims that have resulted from this offering. This news about FINRA completing the assessment and the related news came from the Nasdaq OMX Group, on Friday. They say the NASDAQ Stock market members will receive compensation on the basis of the analysis that has been carried out by FINRA staff.
The claims that are covered by the ruling cover all the sell-orders that had been placed from 11.11am-11.3- am on 18 May 2012 at $42, or less, and which did not execute. It also includes orders that had been place at $42 or less, that executed under the $42 mark. This will also include the orders that had been placed at $42 and had been executed but were not confirmed immediately. Also included are the complex categories of various orders that had been placed at $42 or more but had not been confirmed and had been cancelled before 1:50PM
Facebook Inc (NASDAQ:FB) went public on 2012 May. On the day the public offering was launched, some software problems occurred on the NASDAQ exchange. These resulted in the orders being filled at the incorrect prices. This meant that certain investors ended up losing their money. FINRA handed-down their decision on Friday.
The problem that Facebook Inc (NASDAQ:FB) faced during their IPO is weighing heavily on the impending Twitter IPO and the latter has been very conservative with its statements and valuation. They want to avoid the kinds of issues that Facebook Inc (NASDAQ:FB) faced during its IPO offering. Facebook Inc (NASDAQ:FB) shares climbed above their initial levels only in the month of June 2013.