Citigroup is Fined $2 Million Over Facebook IPO

By: Associated Press Email
By: Associated Press Email

BOSTON (AP) - The top securities regulator in Massachusetts has fined Citigroup $2 million for failing to supervise analysts who improperly disclosed confidential information about Facebook's initial public offering.

Secretary of State William Galvin announced Friday that Citi acknowledged a statement of facts in the case and agreed to permanently stop violating state securities laws.

Galvin's office said a junior analyst assigned to work on the IPO emailed two employees at a tech blog that contained confidential information, including a senior analyst's view of investment risks and positives, and revenue estimates for Facebook. The analyst was eventually fired.

Galvin says the senior analyst also gave unpublished information about YouTube revenue estimates to a reporter for a French business magazine.

A message was left for Citi for comment.

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