Massachusetts Fines Morgan Stanley Over Facebook Issue

Before you go, we thought you'd like these...
Before you go close icon

Morgan Stanley has agreed to pay a $5 million fine to the commonwealth of Massachusetts to settle allegations of impropriety relating to the Facebook IPO earlier this year, a court filing reveals. The investment bank, which was the lead underwriter of the IPO, had been accused of violating securities laws in its conduct of the Facebook issue, and of acting in a "dishonest and unethical" manner.

In paying the fine, Morgan Stanley neither admitted nor denied the charges.

Massachusetts' punitive action is not its first in relation to the Facebook IPO. In October, syndicate member Citigroup paid the commonwealth a $2 million fine over similar accusations.

The article Massachusetts Fines Morgan Stanley Over Facebook Issue originally appeared on Fool.com.

Eric Volkman owns shares of Facebook. The Motley Fool owns shares of Citigroup and Facebook and has options on Facebook. Motley Fool newsletter services recommend Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

Man's Wife Leaves Him And Their Kids After A Fight - Two Days Later He Posts This Man's Wife Leaves Him And Their Kids After A Fight - Two Days Later He Posts This
15 Recall the Kindest Thing a Stranger Ever Did for Them 15 Recall the Kindest Thing a Stranger Ever Did for Them
Man Finds 5 Abandoned 'Puppies' In His Garden - Then Quickly Realizes He Made A Big Man Finds 5 Abandoned 'Puppies' In His Garden - Then Quickly Realizes He Made A Big