Citigroup Fined $2M In Massachusetts Over Pre-IPO Disclosure Of Facebook Documents

The state of Massachusetts fined Citigroup $2 million after finding that one of the company’s junior analysts improperly disclosed confidential information prior to Facebook’s May 18 initial public offering, according to reports.

The state of Massachusetts fined Citigroup $2 million after finding that one of the company’s junior analysts improperly disclosed confidential information prior to Facebook’s May 18 initial public offering, according to reports.

Bloomberg reported that the analyst emailed two TechCrunch employees weeks prior to the IPO, seeking feedback on a document from Facebook that featured a senior analyst’s view of investment risks and revenue estimates. Citigroup and the other underwriters were barred from disseminating research until 40 days after the IPO.

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