Morgan Stanley's $10.2M Deal Over Advisor Expenses Heads Back to Court

Morgan Stanley building

Ex-Morgan Stanley advisor/brokers Matthew Lucadano and Tracy Chen appealed the $10.2 million settlement in March 2020, claiming the deal wasn’t enough to compensate the advisors and brokers; they sought an additional $250 million.

Lucadano alleged that the federal judge who signed off on the settlement agreed to a deal in which not all class action members suffered a sufficient injury and the Ninth Circuit Court agreed with him. He was with Morgan Stanley from 2009-2014 and is now with LPL.

Chen was with Morgan Stanley as a broker/rep from 1999 until 2013, when he was terminated by the wirehouse for allegedly requesting and receiving reimbursement from the company for expenses described as client gifts when the orders for the gifts were canceled by the rep, according to FINRA.

Chen joined Oppenheimer & Co. but was allowed to resign after being barred from the industry by FINRA for allegedly converting firm funds, falsifying firm records and causing Morgan Stanley’s books and records to be inaccurate, according to FINRA.

(Pictured: Morgan Stanley headquarters in New York; Photo: Bloomberg)

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