Facts

Frank Myers, individually and on behalf of various trusts, asserted an arbitration claim against respondent Morgan Stanley in relation to stock investments.

CLAIMANT'S CONTENTIONS: Claimant claimed that investments in Russian companies resulted in multiple violations of securities laws. Myers asserted various claims for fraud, breach of fiduciary duty, elder abuse, breach of contract, improper investment strategies, and failure to supervise.

RESPONDENT'S CONTENTIONS: Respondent sought denial of the claim and expungement of reference to the claim from the Central Registration Depository records.

Damages

Petitioners sought compensatory damages in the amount of $975,000. Petitioners also sought punitive damages, lost opportunity, rescission, disgorgement of fees, interest, and attorney fees and costs.

Result

The arbitrator recommended expungement of the claim. The arbitrator concluded that the unnamed parties, on behalf of respondent, were granted authority to invest in stocks at their discretion. Additionally, claimants had the ability to modify the investment strategy and regularly reviewed the investments. The arbitrator found the claims were false. Claimants only asserted claims against respondent Morgan Stanley. Respondent Morgan Stanley settled with claimants for a substantial monetary amount.

Other Information

ARBITRATORS: Robert E. Jenks, presiding chairperson, Holly Banafsheh, Owen Frances.