Citigroup has filed a claim with OMX Group seeking compensation for losses it suffered during Facebook initial public offering in May 2012.
Citigroup is looking to recover some losses it suffered by participating in Nasdaq compensation plan, which allocated $62m to pay for the losses suffered by the companies during the glitch laden Facebook IPO issue, according to Reuters.
Citigroup is also looking at all of its options, including legal options to claim compensation.
During May 2012, Citigroup’s market-making division lost around $20m, which is a slice of the more than $500m that market-making firms and brokers lost in Facebook stock due to problems with Nasdaq’s exchange systems.
Other firms including Knight Capital Group have also planned to file claims under Nasdaq’s plan.
UBS has also pegged its losses from the glitch ladden IPO at above $350m and it had filed an arbitration demand against Nasdaq to fully recover losses over its ‘gross mishandling the IPO.’
Additionally, Citigroup said in a letter to the US Securities and Exchange Commission that the exchange operator should be responsible for hundreds of millions of dollars more.
In summer 2012, Citigroup and UBS both criticised Nasdaq’s proposal to repay some of the Facebook trading losses by calling the package too small.
In March 2013, the US Securities and Exchange Commission (SEC) has approved exchange group Nasdaq OMX’s proposal to pay $62m to investors who lost money due to a technical glitch during Facebook’s initial public offering (IPO) in May 2012.
