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Compliance December 18, 2007
Morgan Stanley Hit with 401(k) Stock Suit
A New York law firm has filed a lawsuit against Morgan Stanley and its 401(k) plan fiduciaries charging that the fiduciaries improperly allowed participants to continue investing in company stock.
Reported by Fred Schneyer
A news release from the Stull, Stull & Brody firm said its suit, which seeks class action status under the Employee Retirement Income Security Act (ERISA), is filed on behalf of 401(k) participants who were in the Morgan Stanley Stock Fund investment option.
The complaint, filed in the U.S. District Court for the Southern District of New York, alleges that the defendants allowed plan participants to invest in company stock while they knew, or should have known, that the stock was an imprudent investment.
More information is at www.ssbny.com.
Second Suit
On December 14, 2007, Wolf Haldenstein Adler Freeman & Herz LLP filed a class action lawsuit (Egan v. Morgan Stanley & Co., et al.) in the United States District Court for the Southern District of New York, on behalf of all participants and beneficiaries of the Morgan Stanley 401(K) Plan from December 1, 2005 to present, whose accounts included investments in the stock of Morgan Stanley. That suit named as defendants Morgan Stanley, Morgan Stanley & Co. Inc., certain officers and directors of Morgan Stanley & Co. Inc., the Global Director of Human Resources of Morgan Stanley, and the Investment Committee of the Morgan Stanley 401(K) Plan.
A copy of the complaint is available online here.
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