A lawsuit claiming that Morgan Stanley failed to protect the personal information of clients is pending. The case alleges that the wirehouse failed to protect the personal information of over 154,000 brokers and affected clients. Although the company warned the clients of the two data security incidents, they failed to take appropriate actions to prevent further damage to their financial wellbeing. As a result, the law firm is facing a massive legal bill. But the company claims that it has done nothing wrong.
Despite the recent settlement, Morgan Stanley continues to face class action lawsuits.
In December 2018, a former trader filed a suit against the firm, alleging negligence and unjust enrichment. The case is Latif v. Morgan Stanley & Co., 18-cv-11528. The plaintiffs’ attorneys, Abraham Melamed and Kimberly Lunetta are handling the case.
The lawsuit alleges that the Wall Street firm used personal information stolen from its servers to open fraudulent financial accounts, apply for student loans, and file fraudulent tax returns. The firm is currently trying to pull Mr. Babu into the proceeding. The firm has already dismissed him. However, Morgan Stanley is attempting to get him dragged into the lawsuit. The attorney who is representing Mr. Shafer is Jacob Frenkel of Dickinson Wright in Washington, D.C.
A Florida law firm has filed a lawsuit against Morgan Stanley, alleging that the bank failed to provide evidence relevant to hundreds of arbitration cases.
Last month, Morgan Stanley acknowledged that it had uncovered electronic tapes that contained the information that could have helped prove its case in these cases. The suit is expected to go to trial in 2020. If it is successful, the case could lead to a $16 billion settlement. So far, Lockette has signed up dozens of clients and hopes to expand the class size to one thousand plaintiffs.
In addition to the lawsuit against Morgan Stanley, dozens of other individuals have filed similar lawsuits against the bank. The first lawsuit was filed in November by a former employee. The company says it compensated her for her miscoded trades. The suit is now underway in Florida’s U.S. District Court. The case is now awaiting a decision. A judge will be required to rule on whether the money was stolen.
A class-action lawsuit against Morgan Stanley has been filed by an ex-employee who claims that she was fired from her job due to her pregnancy. Another lawsuit against Morgan Stanley was filed by a customer who claims the bank failed to properly wipe computers with passwords. The suit also states that the company failed to notify employees about its employees’ rights and responsibilities under the law. So, in the end, the plaintiffs have successfully sued Morgan.
Among the other claims in the Morgan Stanley lawsuit, a New Mexico couple claimed that their financial advisor induced them to make unsuitable investments.
The lawsuit claimed that the financial adviser’s conduct constituted a negligent misrepresentation, breach of fiduciary duty, and a breach of contract. The couple claims that they lost more than $500 million on eight accounts with Morgan Stanley’s broker-dealer.
In addition, the Morgan Stanley lawsuit claims that the financial institution knowingly failed to wipe decommissioned computers. This is a class-action lawsuit, and the plaintiffs are seeking class-action status. They are seeking damages from Morgan Stanley after their lawsuit was settled. The case cites the failure of the bank to properly wipe the computer equipment of clients. The settlement involves the disclosure of all relevant information to investors. The alleged violations include failing to comply with client instructions.
In addition to denying the allegations, Morgan Stanley also denies the allegations made in the lawsuit.
The complaint states that the financial firm had failed to sanitize its computers, which would have prevented the unauthorized use of the information. While the complaint was filed in May, it has not been officially ruled yet. The case is ongoing, and the two sides may seek to settle soon. There is no guarantee that the Morgan Stanley suit will prevail.
A recent Morgan Stanley lawsuit has been pending for over a year now. It claims that the firm violated its policy and violated the rights of clients. The court ruled in favor of the plaintiffs in the case and the bank has agreed to pay back all damages incurred by the plaintiffs. The settlement has been negotiated in the interest of all affected clients and is being contested in a federal court in New York.