Morgan Stanley fined $5 million over Facebook IPO
   
Quotes

Morgan Stanley fined $5 million over Facebook IPO

Last Updated: Wednesday, December 19, 2012, 11:57
 
 Comment 0
 
Morgan Stanley fined $5 million over Facebook IPO
New York: Morgan Stanley, the main underwriter for Facebook's initial public offering (IPO), has agreed to pay USD 5 million to Massachusetts' securities regulators as it was accused of disclosing downgraded revenue forecast only to certain analysts but not main street investors.

According to the consent order of the securities division of the Commonwealth of Massachusetts, a Morgan Stanley banker arranged phone calls between Facebook's treasurer and the analysts of major underwriters to disclose detailed negative trends which would impact Facebook's revenue for 2012 a week before its IPO, reported Xinhua.

The revised figures were lower than many analysts had expected and led them to cut their annual revenue forecast for 2012. The renewed forecast was only passed to investment banks but not individual investors who have lost billions of dollars since the IPO.

Facebook shares were priced at USD 38 for IPO, but the shares were trading around USD 27 in Tuesday's midday trading, about 30 percent below the IPO price. The disappointing stock price has led to a series of government probes and more than 40 lawsuits.

Morgan Stanley didn't admit or deny the charges of violating relative securities laws.

Spokesman Wesley McDade said in a statement that the company was pleased "to have put this matter behind us".

Massachusetts securities regulators also fined Citigroup USD 2 million in October as an analyst of the bank leaked confidential information before Facebook's IPO.

IANS



First Published: Wednesday, December 19, 2012, 11:54


Comments


comments powered by Disqus
Ford Figo Aspire
Ford Figo Aspire
Samsung Galaxy S6 Edge Plus, Note 5
Samsung Galaxy S6 Edge Plus, Note 5
Maruti Suzuki S-Cross
Maruti Suzuki S-Cross
Mahindra New Thar CRDe
Mahindra New Thar CRDe
New Generation Scorpio
New Generation Scorpio

Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved