Morgan Stanley (NYSE:MS) has agreed to pay a $5 million fine to the commonwealth of Massachusetts to settle allegations of impropriety relating to the Facebook (NASDAQ: FB) IPO earlier this year, a court filing reveals. The investment bank, which was the lead underwriter of the IPO, had been accused of violating securities laws in its conduct of the Facebook issue, and of acting in a "dishonest and unethical" manner.
In paying the fine, Morgan Stanley neither admitted nor denied the charges.
Massachusetts' punitive action is not its first in relation to the Facebook IPO. In October, syndicate member Citigroup (NYSE:C) paid the commonwealth a $2 million fine over similar accusations.
Eric Volkman owns shares of Facebook. The Motley Fool owns shares of Citigroup and Facebook and has options on Facebook. Motley Fool newsletter services recommend Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.