The Northside Sun reported a couple of weeks ago about a recent $388,000 arbitration verdict in favor of two Jackson metro residents against Morgan Stanley.
The plaintiffs alleged that the local Morgan Stanley office mishandled their discretionary accounts and alleged negligence, gross negligence, suitability violations, fraud and breach of fiduciary duty. The arbitration was conducted by the Financial Industry Regulatory Authority (FINRA).
The plaintiffs had discretionary accounts where Morgan Stanley brokers made all the buy-sell trading decisions for the account. The plaintiffs claimed that Morgan Stanley’s discretionary accounts vastly under-performed the market during and after the 2008 financial crisis. Plaintiffs further alleged that Morgan Stanley improperly utilized one-size-fits-all strategies without regard to the personal circumstances of each plaintiff.
The FINRA arbitration panel agreed with the plaintiffs and rendered a damages verdict of $388,000.
Jud Lee of Madison represented the plaintiffs. Morgan Stanley was represented by out-of-state lawyers.