UBS Preparing to Tell Nasdaq Where to Stick $40 Million Apology for Facebook Flop?

So remember Nasdaq’s plan to distribute $40 million to investors who suffered losses when trading in Facebook shares failed to open as scheduled on May 18? You know, the offer that the New York Stock Exchange protested as unfair, and Knight Capital deemed inadequate? Add UBS to those unsatisfied by Nasdaq CEO Robert Greifeld’s little mea culpa:

The lawsuit, we suppose is not so surprising, but the $350 million number is new. Knight Capital has said it lost $35 million to the delays in trading on Facebook’s IPO day, and we’ve been reading that the stock’s four biggest market makers—Knight, Citadel, Citigroup and UBS—suffered losses in the neighborhood of $110 million. The CNBC scoop, clearly, would blow that number out of the water, and while Nasdaq specified it would only compensate losses suffered under certain conditions…stay tuned.