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60,000 workers against Morgan Stanley in $150 million class case

Staff Writer | August 22, 2016
Sanford Heisler, LLP filed a class complaint in the U.S. District Court of the Southern District of New York.
Morgan Stanley
Pension   Retirement savings in multiple funds
The firm is "...detailing the many ways in which Morgan Stanley violates basic fiduciary duties under ERISA and abuses its employees' trust by mismanaging their retirement funds. The company invests employees' retirement savings in multiple funds that consistently underperform compared to other similar collective investment funds.

"The company also steers these investments to Morgan Stanley's own poorly performing mutual funds, profiting off employees' retirement savings. For this inferior plan management, Morgan Stanley charges its employees excessive prices, which are far higher than those it charges outside institutional clients with like assets and investment strategy.

"The consequences to employees are substantial: Morgan Stanley's plans have cost its employees hundreds of millions of dollars in retirement funds.

"Plaintiff Robert Patterson, a participant in the Company's retirement plan, filed the case on behalf of himself and approximately 60,000 current and former plan participants.

"Named as Defendants are Morgan Stanley, its various subsidiaries, and the Company's Board of Directors. The class complaint seeks $150 million in damages."