UBS cannot arbitrate with Nasdaq over Facebook IPO: court

Reuters News
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Posted: Oct 31, 2014 9:54 AM

NEW YORK (Reuters) - A divided U.S. appeals court on Friday rejected UBS AG's <UBSN.VX> bid to compel Nasdaq OMX Group Inc <NDAQ.O> to arbitrate a dispute over how the exchange operator handled Facebook Inc's <FB.O> May 2012 initial public offering.

By a 2-1 vote, the 2nd U.S. Circuit Court of Appeals in New York upheld a lower court judge's conclusion that UBS' claims were not subject to arbitration.

UBS claimed that Nasdaq's mismanagement of the IPO caused the Swiss bank to unintentionally amass tens of millions of Facebook shares, ultimately resulting in more than $350 million of losses.

(Reporting by Jonathan Stempel in New York; Editing by James Dalgleish)