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- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
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NEWSLETTERS & ALERTS
Goldman, JPMorgan, M. Stanley Can Keep $100Mn Profit from Trading Facebook
A federal appeals court unanimously rejected a claim by one Facebook shareholder that "lock-up" agreements forbade Goldman Sachs, JPMorgan Chase and Morgan Stanley from trading Facebook shares soon after the May 2012 initial public offering. The basis of the claim was that the banks and selling shareholders together formed a "group" owning more than 10% of the social media company's stock.
As a result, the 3 investment banks need not forfeit their estimated $100 million of trading profits.
The lawsuit was one of dozens targeting Facebook, the banks and others after the $16 billion IPO suffered from technical glitches and its stock price slid 54% within 4 months.
Thursday’s ruling upheld U.S. District Judge Robert Sweet’s dismissal of the lawsuit. Judge Sweet said the lock-up agreements restricting insiders from selling stock were standard in the industry; Circuit Judge Ralph Winter, who sat on the panel, said subjecting bank underwriters to similar restrictions would "complicate" their role, add millions of dollars of legal exposure and reduce the number of companies going public.