This time, 10 former Morgan Stanley advisors are arbitrating their claims in the hopes of a quicker resolution. A lawsuit filed by others seeking class action status is ongoing.
A group of former Morgan Stanley advisors has filed a claim over forfeited deferred compensation before the Financial Industry Regulatory Authority’s arbitration forum, according to a lawyer representing the claimants.
Law firms Eccleston Law and Rosca Scarlato, which are representing the 10 ex-Morgan Stanley advisors, filed the claim in New York last week, according to James Eccleston, managing partner at Eccleston Law. A claim was also filed in Pennsylvania on behalf of six other former Morgan Stanley advisors, Eccleston says.
“The financial advisors allege that Morgan Stanley reaped substantial fee revenues from its advisors’ diligent and devoted work and benefited greatly by increasing its own clientele over the years that it employed the advisors,” according to information from Eccleston. “Yet, when the advisors — after many years of working for Morgan Stanley — decided to part away with Morgan Stanley, they were forced to forfeit their deferred compensation.”
The advisors allege that Morgan Stanley violated its duties, the common law, industry rules, standards of fair dealing, state wage and hour laws and the provisions of the Employee Retirement Income Security Act of 1974, according to Eccleston.
Eccleston says the claimants’ lawyers are working on about a dozen group arbitration claims to...
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