Mor­gan Stan­ley to pay $5 mil­lion to reg­u­la­tors

Austin American-Statesman - - BUSINESS -

BOS­TON — Mor­gan Stan­ley, the lead un­der­writer for Face­book’s trou­bled pub­lic stock of­fer­ing, has agreed to pay $5 mil­lion to Mas­sachusetts’ se­cu­ri­ties reg­u­la­tors af­ter they ac­cused it of dis­clos­ing a rev­enue short­fall only to cer­tain an­a­lysts and not the gen­eral pub­lic.

Ac­cord­ing to state reg­u­la­tors, a Mor­gan Stan­ley banker or­ga­nized phone calls be­tween Face­book’s trea­surer and the an­a­lysts of ma­jor un­der­writ­ers to re­lay rev­enue fig­ures that weren’t in­cluded in re­vised doc­u­ments Face­book Inc. filed with U.S. se­cu­ri­ties au­thor­i­ties on May 9.

The num­bers were lower than what many an­a­lysts had ex­pected and caused them to re­vise their an­nual rev­enue es­ti­mates down about 3 per­cent be­low the $5 bil­lion that Face­book had ear­lier forecast for 2012, ac­cord­ing to Mas­sachusetts of­fi­cials.

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