Citi files Nasdaq OMX compensation claim over Facebook IPO

Citi has filed a claim with Nasdaq OMX to receive compensation relating to the exchange operator's botched Facebook IPO but has not ruled out further legal action, according to Reuters.

Be the first to comment

Citi files Nasdaq OMX compensation claim over Facebook IPO

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Last month the SEC approved Nasdaq OMX's $62 million compensation package for firms affected by the 18 May Facebook IPO, which was beset by technical glitches.

Citi - which according to Reuters' sources lost around $20 million through the debacle - strongly opposed the package, telling the SEC in an August letter that it "should be entitled to recover all of its losses attributable to Nasdaq's gross negligence, not just a very small fraction".

Nevertheless, the bank filed a claim for its share of the $62 million on Monday, deadline day, sources told Reuters, although it is still looking at other options, including legal ones.

UBS, which says it lost a massive $350 million in the IPO, confirmed last month that it has filed an arbitration demand against Nasdaq OMX to fully recover its losses.

Citi files claim with Nasdaq for compensation from Facebook IPO: sources - Reuters

Sponsored [Webinar] Ensuring Interoperability in the Age of Global, Cross-Border e-Invoicing

Comments: (0)

[Impact Study] Fraud and AML Case Management: How to Operate at the Speed of RiskFinextra Promoted[Impact Study] Fraud and AML Case Management: How to Operate at the Speed of Risk