Nasdaq vows to stand by its Facebook plan

NASDAQ yesterday vowed to stand by it $62m (£39m) compensation plan for firms harmed by a glitch in Facebook’s market debut and defend itself against any related lawsuits.

The news came as Facebook co-founder Dustin Moskovitz hampered the firm’s share price further by selling off more than $108m-worth of stock.

Lee Shavel, Nasdaq’s chief financial officer, spoke out in defence of the plan, which was filed with regulators in July, and said the firm has “robust legal and factual defences” against litigation.

“Clearly there are differences of opinion, and some are more negative on the proposal,” Shavel said at the Barclays Global Financial Services Conference in New York.

“We continue to believe ... that this addresses the issues that we identified in a very fair, reasonable, and objective manner.”

Facebook’s eagerly anticipated IPO, which raised $16bn, was initially delayed by 30 minutes due to a technical glitch at Nasdaq.