Massachusetts Secretary of the Commonwealth William Galvin subpoenaed Citigroup Inc. along with Facebook Inc.'s lead underwriters Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co. in connection with the decline of Facebook's share price following its initial public offering in May, his office said.
Citigroup was fined $2 million after a junior analyst improperly disclosed confidential information before Facebook Inc.'s IPO, Galvin's office said yesterday.
As a part of Facebook's underwriting syndicate, Citigroup Global Markets was barred from disseminating research until 40 days after the stock offering, Galvin said yesterday in a statement. About two weeks before the IPO, a junior analyst at the unit e-mailed two employees at TechCrunch.com seeking feedback on a Facebook document that contained a senior analyst's view of investment risks and revenue estimates, Galvin said.
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