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Schwab settles IPO claims
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March 11, 1999: 7:44 a.m. ET
Broker believed settling with 300 investors irate over theglobe.com IPO
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NEW YORK (CNNfn) - Charles Schwab Corp. is apparently settling the complaints of some 300 investors who claim they paid too much for shares of the hot Internet startup theglobe.com on its first day of trading.
Investors may have lost as much as $1.2 million, the Wall Street Journal reported Thursday.
The claims arose after online investors found they could not cancel orders for theglobe.com stock prior to the company's tremendously successful initial public offering last November.
When the stock soared as high as $97 from its $9 set price in a volatile first trading day, many online investors wound up paying more than they had intended.
Schwab (SCH) says it was unable to process about 300 of the 1,500 cancellation orders it received.
The company, which is the nation's largest online brokerage, denied it was liable for its actions, but said settling the claims was "the right thing to do," according to the Journal.
Schwab declined to comment on the total amount it has paid to theglobe.com IPO investors, but the paper estimates the settlements could be between $600,000 and $1.2 million.
Shares of Schwab jumped 2-11/16 to 81 Wednesday. 
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Charles Schwab
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