Facts

Claimants alleged that respondent Morgan Stanley DW Inc. improperly handled their investment accounts for Leucadia National Corporation bonds, filing suit for negligence; breach of contract; violation of NASD Rule 2110; violation of NASD Rule 3320; and equitable relief.

Respondent denied the claims and asserted various affirmative defenses.

Damages

Claimants requested an award for a minimum total of $805,499.89, in addition to fees and costs incurred. Further, they sought damages as proven at the hearing plus interest at the legal rate; and equitable relief as ordered by the arbitrators. In the Amended Statement of Claim, claimants requested a minimum award of at least $28,244.20, in addition to fees and costs incurred in the prosecution of their claim.

Result

On or about Nov. 13, 2008, the panel reviewed and considered the positions of the parties regarding respondent's Renewed Motion to Compel and Rule 12212/Rule 12511 Discovery Motion. The panel ruled that claimants shall have 15 days from the date of the panel's order to fully and properly respond to and comply with respondent's discovery requests. If claimants failed to do so, respondent's motion is granted. On or about Nov. 25, 2008, the panel reviewed and considered the positions of the parties regarding claimants' Request for an Extension of Time to comply with the panel's order. Claimants' request was denied. The Panel has concluded that claimants have failed to comply with the November 13 Order. Their claims were therefore dismissed with prejudice.

Other Information

In the First Amended Statement of Claim, the following claimants were no longer parties to the case: Mondofin Inc. No. 1, Mondofin Inc. No. 6, Mondofin Inc. No. 11, Mondofin Inc. No. 12, and Mondofin Inc. No. 13. ARBITRATORS: Guenter S. Cohn, Gino D. Serpe, Alfred E. Monahan.