Banking, finance, and taxes
Facebook IPO Mess Costs Morgan Stanley $5 Million
Published:
Last Updated:
The ruling stems from a notice sent by Facebook’s CFO to Morgan Stanley, the lead underwriter of the offering, on the first day of Facebook’s roadshow leading up to the IPO in which the company CFO he was no longer confident in the revenue guidance he had offered to analysts. The filing was later amended, but not before Facebook’s CFO had made numerous phone calls to some analysts conveying information that was not available in the existing filing.
Massachusetts has already fined Citigroup Inc. (NYSE: C) $2 million for supervision failures when the bank’s leading Internet analyst broke the rules related to disclosures about Facebook and Google Inc. (NASDAQ: GOOG).
Shares of Morgan Stanley are up about 0.2% in after-hours trading today, at $18.56 in a 52-week range of $12.26 to $21.19.
Paul Ausick
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.