Nasdaq said to settle with the SEC on flop, IPO Facebook

Dozens of lawsuits and investigations emerged after Facebook's initial public offering on the Nasdaq Stock Market last year. An investigation initiated by the U.S. Commission Securities Exchange, focused on technical errors in the system inadvertently Nasdaq delayed the negotiation of the first day.

Now the word is that the Nasdaq may be able to adjust the breakup with federal regulators, according to the Wall Street Journal.

Sources close to the matter told the Journal that the Nasdaq was preliminary settlement talks with the SEC. If both parties make a deal, it will most likely include a financial penalty that could reach 5 million. In addition, the grant will probably be necessary to take measures to avoid future technical errors.

The SEC has launched an investigation after the debut of Facebook Nasdaq last May when technical problems delayed trading for 30 minutes. This delay caused confusion and uncertainty among investors, and some traders are not able to confirm changes or cancellations made to order Facebook later in the day. All and all, traders glitches cost an estimated $ 500 million in losses, according to the Wall Street Journal.

While the Nasdaq has had to deal with angry investors and the SEC, Facebook was the sort its own problems. Approximately 50 lawsuits have been filed against the social network regarding the IPO failed. Defendants in the trial, many investors argue that Facebook failed to disclose in the critical days leading up to the IPO there was "a severe reduction and pronounced" in the forecast figure of Business growth.Facebook Facebook has maintained that he was innocent of wrongdoing and instead blame on the Nasdaq, blaming technical problems were behind the decline in share price. Nasdaq CEO responded to these allegations by saying that "arrogance" and "trust" between members of the Exchange staff helped battered Facebook IPO.

Nasdaq officials have said that the exchange works on an overhaul of its systems IPO in the wake of the IPO of Facebook. Aside from perhaps a penalty the SEC, Nasdaq announced in June that it would also compensate for traders and investors for losses suffered as a result of the parasite.

While settlement talks with the SEC occurs and moving along, there probably will not be a conclusion for weeks or months, according to the Wall Street Journal.

A Nasdaq spokesman declined to comment on the possible settlement.
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