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I don't have a 500 and only recently purchased a 505 but I've had the same "Updating Firmware" screen that wouldn't go away. I recalled reading at some point that re-setting the reader 10 plus times would cause it to revert back to the original firmware (or previous firmware... one of those).
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Actually not revert, but fall into firmware update mode.
As far as I remember, "Updating Firmware" is exactly the message one sees, when device is in recovery mode.
There could be many reasons why update fails. I would try redownloading firmware installer or even trying older versions.