Facts

Claimants asserted causes of action against Morgan Stanley Smith Barney LLC relating to their investments in equities, oil and gas and other investments.

CLAIMANTS' CONTENTIONS: Claimants contended that respondent Harvey made unsuitable recommendations, resulting in her portfolio being comprised of junk bonds.

Claimant asserted causes of action for financial elder abuse, fraud, negligence, respondeat superior liability and control person liability.

RESPONDENT’S CONTENTIONS: Respondent denied claimants’ allegations and asserted various affirmative defenses.

Result

After the parties settled, Morgan Stanley moved for expungement of references of the dispute from unnamed party Travis Dillard’s registration records. The arbitrator recommended expungement. He found that the underlying claims were erroneous and false and that contrary to claimant Janet E. Russ’s assertions, she was a sophisticated investor who approved everything that Dillard did on her behalf.