SEC approves Nasdaq's Facebook IPO payment plan

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Associated Press

Posted on March 25, 2013 at 10:01 AM

Updated Monday, Mar 25 at 10:02 AM

NEW YORK (AP) — The Securities and Exchange Commission says it has approved a plan by the Nasdaq stock exchange to pay $62 million in reimbursements to investment firms that lost money because of technical problems during Facebook's initial public offering last year.

The Nasdaq had said in June that it would pay $40 million but later increased the amount to $62 million.

Facebook went public May 18 amid great fanfare, but computer glitches at the Nasdaq delayed the start of trading and threw the debut into chaos. Technical problems kept many investors from buying shares that morning, selling them later in the day or even from knowing whether their orders went through. Some said they were left holding shares they didn't want.

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