Arbitration Discovery Fund - Morgan Stanley & Co.
This case is closed. You may review eligibility and related claims information for reference only.
FINRA recently took disciplinary action against Morgan Stanley & Co. Inc. (Morgan Stanley), the successor of Morgan Stanley Dean Witter (MSDW), for MSDW's failure to produce pre-September 11, 2001 email and updates to a supervisory manual to certain arbitration claimants during discovery. As part of a settlement of this action, a $9.5 million fund has been established to pay certain arbitration claimants. As described more fully below, and in the FINRA Letter of Acceptance Waiver and Consent, the settlement applies to investors who brought and completed certain arbitration cases against MSDW. Remediation is expected to be completed by early 2009. A Fund Administrator has been selected to handle customer inquiries. Phone inquiries may be directed to Bradley Skolnik of the Indianapolis law firm of Stewart & Irwin, (317) 639-5454.
Customers or former customers who brought arbitration claims against MSDW who fall into one or both of the two groups described below:
Email Claimants: Customers who brought arbitration cases against MSDW in any arbitration forum that were either (a) still pending on September 11, 2001, or brought after September 11, 2001, and (b) which were resolved or closed by June 20, 2005, may be eligible for payment due to the firm's failure to produce pre-September 11, 2001 email.
Cases that were still open after that date are not part of this settlement. Cases must have been brought by customers of MSDW. The settlement does not cover claims relating to employment disputes by MSDW employees or cases in which MSDW was the claimant.
Supervisory Manual (MAPPS Manual) Claimants: Customers who brought cases against MSDW in the NASD (now FINRA) arbitration forum on or after July 1, 1999, that were closed by December 31, 2005, and who did not receive required updates to the firm's supervisory procedures manual, may be eligible for payment.
The case must have been brought by customers of MSDW. The settlement does not cover claims relating to employment disputes by MSDW employees or cases in which MSDW was the claimant.
The Fund Administrator will send a notice to the eligible claimants, providing them with specific instructions and forms. General participation guidelines and additional participation information for claimants in the two groups described above are as follows:
If you are in this group, you will have the opportunity to accept an estimated payment of $3,000-$5,000 (Standard Payment), subject to the availability of funds, without getting copies of email, or having Morgan Stanley look for and produce remaining pre-September 11, 2001 emails that were not produced during the arbitration. Alternatively, you can get the emails, and then decide whether to:
Note: If you choose to have the Fund Administrator perform a review, you face the possibility of getting less than Standard Payment, or receiving no payment.
If you want to receive the Standard Payment, you would fill out the form with that choice, and sign a waiver (see below). You will receive an initial payment in approximately two months, with any additional payment made at a later date, if there are funds available for such payments, after the claims process is complete. If you choose to have Morgan Stanley search its records for any pre-September 11, 2001 emails that are still available, you will not receive the initial payment described above while that request is pending. But if, having reviewed the emails, you elect to receive the Standard Payment, you will be able to receive the same amount of money at a later time.
How to Get Copies of Pre-September 11 Emails
What Claimants Can Do Once They Get Emails
Waiver of Certain Rights
Supervisory Manual (MAPPS Manual) Claimants
To participate in the settlement, you will have to certify that you did not receive the updates to the MAPPS Manual related to your case during the arbitration proceeding, or that you have made efforts to find out whether you did and cannot obtain that information. This can be done in one of three ways:
Qualifying claimants will receive an initial payment approximately two months after providing the certification. This amount is expected to be $1,500, but is subject to the availability of funds. Qualifying claimants will receive any additional payment, up to $1,000 more, if there are funds available for such payments, after the claims process is complete.
Waiver of Certain Rights