LAWSUITS NEWS & LEGAL INFORMATION
Lost Emails
New York, NY: (Sep-27-07) The Financial Industry Regulatory Authority (FINRA) filed charges against Morgan Stanley, alleging that its Dean Witter subsidiary failed to provide emails related to pending arbitration cases by claiming the information was lost during the Sept. 11 terrorist attacks. The lawsuit stated that FINRA found that, in actuality, the firm had managed to recover millions of pre-9/11 emails and had some of them destroyed to prevent further investigation. The FIRA said the emails had been sought by claimants and regulators from October 2001 through March 2005.
As part of the settlement reached, Morgan Stanley agreed to pay $12.5 million to settle allegations. The settlement is said to resolve separate charges related to the firm's failure to provide required supervisory materials to numerous arbitration claimants. Under the agreement, Morgan Stanley will provide $9.5 million to a fund meant to compensate the two groups of affected customers. FINRA estimates that thousands of claimants will be eligible for payment. FINRA also imposed a $3 million fine on the firm, and ordered that Morgan Stanley hire an independent consultant to review its retail brokerage operation's procedures for complying with discovery requirements in arbitration proceedings. [NEW YORK BUSINESS: LOST EMAILS]
Published on Sep-29-07
As part of the settlement reached, Morgan Stanley agreed to pay $12.5 million to settle allegations. The settlement is said to resolve separate charges related to the firm's failure to provide required supervisory materials to numerous arbitration claimants. Under the agreement, Morgan Stanley will provide $9.5 million to a fund meant to compensate the two groups of affected customers. FINRA estimates that thousands of claimants will be eligible for payment. FINRA also imposed a $3 million fine on the firm, and ordered that Morgan Stanley hire an independent consultant to review its retail brokerage operation's procedures for complying with discovery requirements in arbitration proceedings. [NEW YORK BUSINESS: LOST EMAILS]
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