SEC Lawsuit Against Morgan Stanley: $15 Million Penalty

Patricia Shehan
All Headline News Contributor
May 10, 2006

Washington D.C. (AHN) - A news release Wednesday announced that the U.S. Securities and Exchange Commission (SEC) has filed a civil injunction against Morgan Stanley and Co., Inc. for failure to produce e-mails in the tens of thousands during investigations dating from 2000 through 2005. The SEC alleged Morgan Stanley did not search diligently for the tapes or their back-up tapes. The SEC suit against Morgan Stanley calls for a $15 million penalty and required company reforms, subject to court approval. This law suit comes on the heels of another lawsuit being sought by a Florida law firm for $100 million in damages from the Wall Street firm filed the first week of May.

Labels: Morgan Stanley