Spinning Of Ipo Shares

The practice of “spinning” of IPO shares has been under fire as a fraudulent scheme used to be an incentive or perks. This practice has been used as a means of winning new investment banking businesses. New York Attorney General Eliot Spitzer filed a civil lawsuit in an effort to recoup millions of dollars that he maintains rightfully belong to shareholders.

The following questions have been addressed in this article:

How is the Attorney State General able to have the authority to bring this action?
What should companies do about internal and external electronic communications that are being sent regarding business operations?

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