Facts

Claimants Michael Szymanski and Beth Spatz, who are trustees of the Szymanski/Spatz Rev. Trust, alleged negligence, unsuitability, unauthorized trading, secrurities fraud under state and federal law, common law fraud, breach of fiduciary duty, breach of contract, misrepresentation, and failure to supervise. The claims related to investments in various securities including investments in Inktomi stock.

Respondents William Svododa, Steven Hild, Morgan Becker and Morgan Stanley DW Inc. disputed the claims.

Damages

Claimants sought $1,003,728 in compensatory damages, restitution of $2,100 plus interest, and $500,000 in punitive damages. Respondents sought denial of the claims plus costs.

Result

The panel decided the following: 1) All claims against Svoboda were dismissed with prejudice pursuant to the stipulation and the subsequent order issued by the panel; 2) All claims against respondents Becker and Hild are dismissed with prejudice; 3) The panel recommends the expungement of all reference to the above-captioned arbitration from the records of respondents, as maintained by the NASD Central Registration Depository (CRD). Repsondents must obtain confirmation from a court of competent jursidiction before the CRD will execute the expungement directive. Claimants have dismissed all claims against these individuals with prejudice and without receipt of any monetary compensation. The panel is not required to make any specific findings in support of this expungement recommendation; 4) Each party shall bear its own costs and attorney fees; 5) All other relief not expressly granted is denied.

Other Information

The parties stipulated to the dismissal of respondent William Svoboda because he was erroneously named in the statement of claim. Further, claimants have agreed to a dismissal of the action with prejudice without any monetary compensation. Accordingly, the parties seek an expungement of the matter from the registration records of the named respondents.