Morgan Stanley, the lead investment bank in Facebook's troubled initial public offering, will compensate retail investors.
The investors compensated will be those who overpaid when they bought stock in the social network site's flotation, a person familiar with the matter said.
The shares, priced at $38 last week in the largest-ever initial public offering (IPO) for a technology company, jumped to $42.55 in the opening Nasdaq trades. However they have fallen dramatically since by 16%.
Claims by four of Wall Street's main market makers against Nasdaq over Facebook's botched IPO are likely to exceed $100 million, as they and other traders continue to deal with thousands of problems with customer orders.
