Morgan Stanley ERISA Litigation ' 07 Civ. 11285 (RWS)
On December 14, 2007, Wolf Haldenstein filed the first of several related actions in the United States District Court for the Southern District of New York against Morgan Stanley, Morgan Stanley & Co., Inc. and other fiduciaries of the Morgan Stanley 401(k) Plan and the Morgan Stanley Employee Stock Ownership Plan (the 'Plans'). By Order dated February 11, 2008, the Court ordered the consolidation of all related actions and appointed Wolf Haldenstein as co-lead counsel.
The action is brought on behalf of the Plans themselves, as well as a class of participants and/or beneficiaries in the plans from December 1, 2005 to present, for relief to the Plans pursuant to Sections 409 and 502(a) of ERISA, 29 U.S.C.' 1109 and 1132(a). The action primarily alleges that during the Class Period, the defendants breached their fiduciary duties under ERISA by (1) investing and permitting the investment of Morgan Stanley stock in the Plans when it was no longer prudent to do so because, inter alia, Morgan Stanley had become heavily exposed to extraordinary risks relating to its subprime mortgage securitizations business; and (2) by failing to disclose negative material information concerning investment in Morgan Stanley stock.