1,000,000 + Attorneys and Legal Staff - Legal employers hire more people on LawCrossing than any other site.
Livedrive Riles UK Customers by Abruptly Terminating Services
Livedrive Riles UK Customers by Abruptly Terminating Services
Bank of America Asks Judge to Throw Out Jury Verdict in Fraud Case
Bank of America Asks Judge to Throw Out Jury Verdict in Fraud Case
Hewlett-Packard Denied Opportunity to Settle with Shareholders
Hewlett-Packard Denied Opportunity to Settle with Shareholders
McDonald’s Orange Juice Spears Man’s Throat: He Sues
McDonald’s Orange Juice Spears Man’s Throat: He Sues
Job Listings

Morgan Stanley Fined by Massachusetts over Facebook IPO

On Monday, William F. Galvin, the secretary of the commonwealth of Massachusetts, accused Morgan Stanley of improperly influencing the way stock was offered during the Facebook IPO. Morgan Stanley was fined $5 million for violating securities laws in relation to the initial public stock offering of Facebook.

Galvin said in an interview, “The broader message here is we are going to use any means possible to enforce the strict code in place about giving out information … We want to get the message across that if Wall Street wants to get confidence back, they can’t disadvantage Main Street.”

A Morgan Stanley spokeswoman said, “Morgan Stanley is committed to robust compliance with both the letter and the spirit of all applicable regulations and laws.” Though Morgan Stanley neither denied nor admitted any wrongdoing, the consent order of Galvin asserted that a senior Morgan Stanley banker had coached Facebook on methods to share information with stock analysts, which is a potential violation of a legal settlement with Wall Street.

Galvin, further asserted in his consent order that while the banker did not directly contact the analysts, his actions had put ordinary investors at a disadvantage. Mr. Galvin said in a statement, “Morgan Stanley’s senior investment banker did everything but make the phone calls himself … He not only rehearsed with Facebook’s treasurer who placed the calls to the research analysts, but he also drafted the majority of the script Facebook’s treasurer utilized.”

What

 job title, keywords

Where

 city, state, zip



Get JD Journal in Your Mail
Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!


The order mentioned that just 12 minutes after filing the amended prospectus before the IPO on May 9, the Facebook treasurer had phoned Wall Street research analysts from her hotel. She had a 15-minute conversation with Morgan Stanley people, and then spoke with the other banks. The order mentioned that the calls gave additional information including “quantitative information regarding Facebook’s second-quarter 2012 projections,” that were not included in the amended prospectus.

Morgan Stanley Fined by Massachusetts over Facebook IPO by

Tagged: , , ,

Posted by on December 18, 2012. Filed under Business News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

 

 

Job of the Day
Real Estate Associate
USA-TX-Dallas

Our client is a north Dallas law firm who seeks a Real Estate Development Associate.  The ideal candidate will have 2-4 years law firm experience concentrated in representing real estate develope...