Mass. Fines Morgan Stanley $5M Over Facebook IPO

Law360, New York (December 17, 2012, 5:20 PM EST) -- Morgan Stanley on Monday was hit with a $5 million fine by Massachusetts' top securities regulator over allegations that a senior investment banker improperly influenced research analysts before the initial public offering of Facebook Inc. in May.

Massachusetts Secretary of the Commonwealth William F. Galvin contends that as the lead underwriter for Facebook’s May 18 IPO, Morgan Stanley unlawfully helped the social media giant provide key information related to the stock offering to institutional investors while leaving retail investors in the dark.

The bank agreed to...
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