Morgan Stanley Ordered to Pay $110,000 to 401 (K) Participant

A Des Moines, Iowa FINRA arbitration panel slapped Morgan Stanley with a recent award of $80,504 in compensatory damages to the Claimant, $1,500 in expert witness costs, $26,566 in attorneys’ fees and $1,800 in forum fees for the arbitration. According to the award, the Claimant alleged various claims of breach of fiduciary duty, suitability, lack of supervision and negligence against Morgan Stanley who was the manager of his employer’s 401(k) plan. He further claimed that he contacted his Morgan Stanley broker telling him he wanted to go to cash because he was worried about the market and it being too risky for his investment goals but the broker advised him to stay in the market causing him to lose $81,000.

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