Free Market Evaluation - Send us your resume and we will give you free feedback
Popeyes Shift Manager Fired for Allowing Gunman to Take $400
Popeyes Shift Manager Fired for Allowing Gunman to Take $400
Uber Sued for Refusing to Taxi Guide Dogs of the Blind
Uber Sued for Refusing to Taxi Guide Dogs of the Blind
Comcast and Time Warner to Discuss Merger with Department of Justice
Comcast and Time Warner to Discuss Merger with Department of Justice
Upon Net Neutrality Rules Being Published, Legal Challenge Filed
Upon Net Neutrality Rules Being Published, Legal Challenge Filed
Legal Job Listings
Download PDF

Morgan Stanley Fined by Massachusetts over Facebook IPO View Count: 41

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.”

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 Paralegal
USA-TX-San Antonio
Fantastic opportunity to handle sophisticated commercial real estate transactions covering the buying, selling, developing, and leasing of raw land, established developments, and related commercial re...


Apply now

Related Posts: