Facts

Nigel Timms made claims against Morgan Stanley Smith Barney LLC in connection with certain stock positions alleged to be unsuitable.

CLAIMANT'S CONTENTIONS: Timms contended Morgan Stanley violated several securities laws, rules under the Financial Industry Regulatory Authority, fraud, fraudulent misrepresentation, negligence, breach of contract, and breach of fiduciary duty.

RESPONDENT'S CONTENTIONS: Multiple defenses were put forth by Morgan Stanley, and Timms' claims were denied. Morgan Stanley moved to expunge the Central Registration Depository records regarding the arbitration's references to a non-party named John Yeoman.

Damages

Timms sought roughly $800,000 in compensatory damages, plus costs, fees, and punitive damages.

Result

The parties settled for $60,000. The panel recommended expunging references in connection with Yeoman. The claims were found to be erroneous and/or false by the panel. Timms' losses were found to be due to industry downturns at a time when Timms' investment strategies were aggressive.

Other Information

ARBITRATORS: Herbert Liberman, presiding chairperson; William Ziering; Terry M. Lloyd.