Bank Morgan Stanley fined for disclosure of sensitive data on Facebook

Bank Morgan Stanley, who led the IPO of social network Facebook, has agreed to pay a fine of $ 5 million to the American market regulators in Massachusetts, after the last found that Morgan Stanley disclosed the results of the quarterly IPO shortly before a small group of investors, but not to the general public.

According to the market regulator in Massachusetts, bankers Morgan Stanley arranged conference calls between employees Facebook, bankers, analysts, and a limited number of investors, which were disclosed some important data on the performance of social networks, which were not included in the official records of the company. According to Massachusetts regulators, the result of such activities, the precedent on which some investors have an informational advantage over others.

The complaint states that a limited number of investors was evidence that the results were lower than the average Facebook and some investors either declined to purchase, or they have decided to use this data to their advantage.


At Morgan Stanley acknowledged the fact of disclosure of the data, but said that this was done in error, and the amount of disclosure of the information was not material to the market and it did not have evidence of significant effects, although the shares after the IPO, and showed a negative trend.