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News summary: Morgan fined $5M for Facebook IPO

Published on NewsOK Modified: December 17, 2012 at 4:22 pm •  Published: December 17, 2012

FACEBOOK FINE: Morgan Stanley has agreed to pay Massachusetts $5 million for arranging with Facebook to disclose a revenue shortfall to certain analysts ahead of Facebook's IPO.

SECRET STUFF: Authorities say Facebook lost confidence in its estimate for $5 billion in revenue for 2012, and Morgan Stanley arranged for the information to be shared by phone with analysts at major underwriters. After the briefings, analysts cut their forecasts by 3 percent.

SHARE ACTION: Facebook shares opened at $38 in May, and barely closed above that on the first day of trading. On Monday, they fell 3 cents to $26.78.