Massachusetts Secretary of the Commonwealth William Galvinsubpoenaed Citigroup Inc. along with Facebook Inc.'s leadunderwriters Morgan Stanley, Goldman Sachs Group Inc. and JPMorganChase & Co. in connection with the decline of Facebook's shareprice following its initial public offering in May, his officesaid.
Citigroup was fined $2 million after a junior analyst improperlydisclosed confidential information before Facebook Inc.'s IPO,Galvin's office said yesterday.
As a part of Facebook's underwriting syndicate, Citigroup GlobalMarkets was barred from disseminating research until 40 days afterthe stock offering, Galvin said yesterday in a statement. About twoweeks before the IPO, a junior analyst at the unit e-mailed twoemployees at TechCrunch.com seeking feedback on a Facebook documentthat contained a senior analyst's view of investment risks andrevenue estimates, Galvin said.
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