A former customer sued the firm’s client, a now-retired financial advisor, and Morgan Stanley, the securities brokerage firm at which the financial advisor had formerly been employed, seeking $1.2 million in damages. The brokerage firm refused our client’s request for defense and indemnification. Thereafter, as a result of AOBL’s aggressive defense, the claimant dropped all of his claims against our client, but continued to press his claims against the brokerage firm.
At the arbitration hearing, our client sought indemnification for the amount of attorneys’ fees and costs he incurred in defending the claims. A panel of three FINRA arbitrators ordered Morgan Stanley to pay the financial advisor over $140,000 in compensatory damages (the entirety of his defense costs) and also ordered the brokerage firm to pay him $10,000 in punitive damages.
The arbitration Award.
For AdvisorHub article titled “Ex-Broker Wins Another Round Against Morgan Stanley.”
For Financial Advisor IQ article titled “Ex-Morgan Stanley FA Scores $140K Win Against Wirehouse.”
