Editing Morgan Stanley (section)

=== 2000s ===

In 2003, Morgan Stanley agreed to pay $125&nbsp;million to settle its portion of a $1.4&nbsp;billion settlement of a suit brought by [[Eliot Spitzer]], the [[Attorney General of New York]], the National Association of Securities Dealers (now the [[Financial Industry Regulatory Authority]] (FINRA)), the United States [[Securities and Exchange Commission]] (SEC), and a number of state securities regulators, relating to intentionally misleading research motivated by a desire to win investment banking business with the companies covered.<ref>{{cite news|url=https://money.cnn.com/2003/04/28/news/wallst_settlement/index.htm|title=Wall St. deal is finalized 
|work=[[CNN]] |date=April 28, 2003 |access-date=April 11, 2012|first1=Jake|last1=Ulick}}</ref>

In 2004, Morgan Stanley settled a sex discrimination suit brought by the [[Equal Employment Opportunity Commission]] for $54&nbsp;million (~${{Format price|{{Inflation|index=US-GDP|value=54000000|start_year=2004}}}} in {{Inflation/year|US-GDP}}).<ref>{{cite web|url=http://www.eeoc.gov/eeoc/newsroom/release/7-12-04.cfm|title=EEOC AND MORGAN STANLEY ANNOUNCE SETTLEMENT OF SEX DISCRIMINATION LAWSUIT|work=[[EEOC]] |date=July 12, 2004 |access-date=April 11, 2012}}</ref>  In 2007, the firm agreed to pay $46&nbsp;million (~${{Format price|{{Inflation|index=US-GDP|value=46000000|start_year=2007}}}} in {{Inflation/year|US-GDP}}) to settle a class action lawsuit brought by eight female brokers.<ref>{{cite news|url=https://www.nytimes.com/2007/04/25/business/25bias.html|title=Wall St. Firm Will Settle Sex Bias Suit
|work=[[NYT]] |date=April 25, 2007 |access-date=April 11, 2012|first=Jenny|last=Anderson}}</ref>

In July 2004, the firm paid NASD a $2.2&nbsp;million (~${{Format price|{{Inflation|index=US-GDP|value=2200000|start_year=2004}}}} in {{Inflation/year|US-GDP}}) fine for more than 1,800 late disclosures of reportable information about its brokers.<ref>{{cite web|url=http://www.finra.org/Newsroom/NewsReleases/2004/p010891|title=NASD Fines Morgan Stanley $2.2 Million for Late Reporting, Firm Temporarily Suspended from Registering New Brokers|work=[[Financial Industry Regulatory Authority]]|date=July 29, 2004|access-date=April 11, 2012|archive-date=October 4, 2014|archive-url=https://web.archive.org/web/20141004053844/http://www.finra.org/Newsroom/NewsReleases/2004/P010891|url-status=dead}}</ref>

In September 2004, the firm paid a $19&nbsp;million (~${{Format price|{{Inflation|index=US-GDP|value=19000000|start_year=2004}}}} in {{Inflation/year|US-GDP}}) fine imposed by NYSE for failure to deliver prospectuses to customers in registered offerings, inaccurate reporting of certain program trading information, short sale violations, failures to fingerprint new employees and failure to timely file exchange forms.<ref>{{cite web|url=https://www.nyse.com/press/1095675057023.html|title=NYSE Regulation Announces a $19 Million Agreement with Morgan Stanley Citing Failure to Deliver Customer Prospectuses and Other Supervisory and Operational Failures|work=NYSE|date=September 22, 2004|access-date=April 11, 2012|url-status=dead|archive-url=https://web.archive.org/web/20121210082915/http://www.nyse.com/press/1095675057023.html|archive-date=December 10, 2012}}</ref>

The New York Stock Exchange imposed a $19&nbsp;million (~${{Format price|{{Inflation|index=US-GDP|value=19000000|start_year=2005}}}} in {{Inflation/year|US-GDP}}) fine on January 12, 2005, for alleged regulatory and supervisory lapses.  At the time, it was the largest fine ever imposed by the NYSE.<ref>{{cite web|url=http://www.corp-ethics.com/company/morgan_stanley/morgan-stanley-hit-by-record-fine.html|title=The New York Stock Exchange (NYSE) has hit US investment bank Morgan Stanley with a record $19m (£10m) fine.|date=January 12, 2005|access-date=April 12, 2012}}</ref>

On May 16, 2005, a Florida jury found that Morgan Stanley failed to give adequate information to [[Ronald Perelman]] about [[Sunbeam Products|Sunbeam]] thereby defrauding him and causing damages to him of $604&nbsp;million (~${{Format price|{{Inflation|index=US-GDP|value=604000000|start_year=2005}}}} in {{Inflation/year|US-GDP}}). In addition, punitive damages were added for total [[damages]] of $1.450&nbsp;billion. This verdict was directed by the judge as a sanction against Morgan Stanley after the firm's attorneys infuriated the court by failing and refusing to produce documents, and falsely telling the court that certain documents did not exist.<ref>{{Cite news|title=Jury Orders Firm to Pay Perelman $1.4 Billion; Morgan Stanley Cited for Fraud In Coleman Sale|last=Barton|first=Jill|date=May 19, 2005|newspaper=[[The Washington Post]]}}</ref> The ruling was overturned on March 21, 2007, and Morgan Stanley was no longer required to pay the $1.57&nbsp;billion (~${{Format price|{{Inflation|index=US-GDP|value=1570000000|start_year=2007}}}} in {{Inflation/year|US-GDP}}) verdict.<ref>{{cite web |url=http://www.iht.com/articles/ap/2007/03/21/america/NA-FIN-US-Morgan-Stanley-Perelman.php |title=Morgan Stanley has billionaire Perelman's $1.58&nbsp;billion award reversed in Sunbeam lawsuit |work=[[International Herald Tribune]] |date=March 29, 2009 |access-date=July 9, 2011 |archive-date=February 17, 2008 |archive-url=https://web.archive.org/web/20080217044616/http://www.iht.com/articles/ap/2007/03/21/america/NA-FIN-US-Morgan-Stanley-Perelman.php |url-status=dead }}</ref>

Morgan Stanley settled a class-action lawsuit on March 2, 2006. It had been filed in California by both current and former Morgan Stanley employees for unfair labor practices instituted to those in the financial advisor training program. Employees of the program had claimed the firm expected trainees to clock overtime hours without additional pay and handle various administrative expenses as a result of their expected duties. A $42.5&nbsp;million settlement was reached and Morgan Stanley admitted no fault.<ref>{{cite news|url=https://www.latimes.com/archives/la-xpm-2006-mar-03-fi-wrap3-story.html |title=Morgan Settles Suit on Overtime |work=Los Angeles Times |date=March 3, 2006 |access-date=July 9, 2011}}</ref>

In May the firm agreed to pay a $15&nbsp;million fine. The Securities and Exchange Commission accused the firm of deleting emails and failing to cooperate with SEC investigators.<ref>{{cite magazine|url=http://www.informationweek.com/news/187202749|title=More E-Mail Problems, More Fines For Morgan Stanley|magazine=InformationWeek|access-date=April 20, 2011}}</ref>

FINRA announced a $12.5&nbsp;million (~${{Format price|{{Inflation|index=US-GDP|value=12500000|start_year=2007}}}} in {{Inflation/year|US-GDP}}) settlement with Morgan Stanley on September 27, 2007. This resolved charges that the firm's former affiliate, Morgan Stanley DW, Inc. (MSDW), failed on numerous occasions to provide emails to claimants in arbitration proceedings as well as to regulators. The company had claimed that the destruction of the firm's email servers in the [[September 11 attacks]] in 2001, terrorist attacks on New York's World Trade Center resulted in the loss of all emails before that date. In fact, the firm had millions of earlier emails that had been retrieved from [[Off-site data protection|backup copies stored in another location]] that was not destroyed in the attacks.<ref>{{cite web |url=http://www.finra.org/PressRoom/NewsReleases/2007NewsReleases/P037071 |title=FINRA News Release |publisher=Finra.org |access-date=July 9, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20080510152730/http://www.finra.org/PressRoom/NewsReleases/2007NewsReleases/P037071 |archive-date=May 10, 2008 }}</ref> Customers who had lost their arbitration cases against Morgan Stanley DW Inc. because of their inability to obtain these emails to demonstrate Morgan Stanley's misconduct received a token amount of money as a result of the settlement.

In July 2007, Morgan Stanley agreed to pay $4.4&nbsp;million (~${{Format price|{{Inflation|index=US-GDP|value=4400000|start_year=2007}}}} in {{Inflation/year|US-GDP}}) to settle a class-action lawsuit.  The firm was accused of incorrectly charging clients for storage of precious metals.<ref>{{cite news |url=http://uk.reuters.com/article/morganstanley-suit-idUKN1228014520070612 |archive-url=https://web.archive.org/web/20151227162551/http://uk.reuters.com/article/morganstanley-suit-idUKN1228014520070612 |url-status=dead |archive-date=December 27, 2015 |title=Morgan Stanley to settle class-action lawsuit |work=Reuters |access-date=April 20, 2012 |date=June 12, 2007}}</ref>

Under a settlement with New York Attorney General Andrew M. Cuomo, the firm agreed to repurchase approximately $4.5&nbsp;billion worth of [[auction rate security|auction rate securities]].  The firm was accused of misrepresenting auction rate securities in their sales and marketing.<ref>{{cite web|url=http://www.advisorone.com/2008/08/14/morgan-stanley-agrees-to-ars-buyback-deal-fines-au|title=Morgan Stanley Agrees to ARS Buy-Back Deal, Fines|publisher=AdvisorOne|access-date=April 20, 2011|archive-url=https://web.archive.org/web/20130530051208/http://www.advisorone.com/2008/08/14/morgan-stanley-agrees-to-ars-buyback-deal-fines-au|archive-date=May 30, 2013|url-status=dead}}</ref>

In March 2009, FINRA announced Morgan Stanley was to pay more than $7&nbsp;million (~${{Format price|{{Inflation|index=US-GDP|value=7000000|start_year=2009}}}} in {{Inflation/year|US-GDP}}) for misconduct in the handling of the accounts of 90 Rochester, New York-area retirees.<ref>{{cite web|url=http://www.finra.org/Newsroom/NewsReleases/2009/P118270|title=Morgan Stanley to Pay More than $7 Million to Resolve FINRA Charges Relating to Misconduct in Early Retirement Investment Promotion|publisher=FINRA|access-date=April 20, 2012|archive-date=October 19, 2011|archive-url=https://web.archive.org/web/20111019191702/http://www.finra.org/Newsroom/NewsReleases/2009/P118270|url-status=dead}}</ref>

The Financial Services Authority fined the firm £1.4m for failing to use controls properly relating to the actions of a rogue trader on one of its trading desks.  Morgan Stanley admitted on June 18, 2008, this resulted in a $120m (~${{Format price|{{Inflation|index=US-GDP|value=120000000|start_year=2008}}}} in {{Inflation/year|US-GDP}}) loss for the firm.<ref>{{cite news |url=https://www.theguardian.com/business/2009/may/13/rogue-trader-fined |title=FSA fines Morgan Stanley £1.4m over rogue trader |work=The Guardian |access-date=April 20, 2012 |first=Jill |last=Treanor |date=May 13, 2009 |location=London}}</ref>