Race and Color Class Action Settlement with
Morgan Stanley
 
We are pleased to announce that on October 22, 2008, U.S. District Court Judge Thelton E. Henderson granted final approval to the settlement reached in our race discrimination case against Morgan Stanley, Curtis-Bauer v. Morgan Stanley & Co. Incorporated f/k/a Morgan Stanley DW Inc., Case No. C-06-3903 (TEH). The Court found the settlement to be fair, adequate and reasonable, and acknowledged the substantial injunctive relief that is required by the settlement agreement. To read a copy of the Court's order, click here.
Plaintiffs alleged that Morgan Stanley discriminated against African-American and Latino Financial Advisors and Registered Financial Advisor Trainees in the Global Wealth Management Group of Morgan Stanley in compensation and business opportunities. The Court has approved a five-year settlement agreement that provides for comprehensive injunctive relief and significant monetary relief for the following Settlement Classes:
  • An injunctive-relief class consisting of: All African-American and Latinos employed as Financial Advisors or Registered Financial Advisor Trainees in the Global Wealth Management Group of Morgan Stanley & Co. Incorporated or its predecessor, Morgan Stanley DW Inc. at any time between October 12, 2002 and December 3, 2007; and
      
  • A monetary-relief class consisting of: All African-American and Latinos employed as Financial Advisors or Registered Financial Advisor Trainees in the Global Wealth Management Group of Morgan Stanley & Co. Incorporated or its predecessor, Morgan Stanley DW Inc. at any time between October 12, 2002 and December 3, 2007, who do not timely opt out.
The settlement includes comprehensive injunctive relief regarding account distributions, partnership arrangements, branch manager promotions, hiring, retention, diversity training, and complaint processing, among other things. The settlement also provides that an independent Diversity Monitor and an independent Industrial Psychologist will be appointed to effectuate the terms of the Agreement. To read a copy of the Settlement Agreement, click here.
In addition, the settlement establishes a significant class monetary settlement fund of $16 million. We believe this is an excellent resolution of the case for Plaintiffs, taking into account the uncertainties, risks, and costs of litigating a case to trial.
Pursuant to the Court's February 7, 2008 Order, the Claims Administrator sent out a Class Notice and Claim Form to all potential class members on February 27, 2008, and the deadline to submit your Claim Form was May 23, 2008.
On November 24, 2008, potential class members who objected to the settlement filed a Notice of Appeal. Pursuant to Court order, until their appeal is resolved the Claims Administrator cannot begin processing the Claim Forms that were timely submitted or allocating individual class members' settlement payments. Therefore, we do not anticipate that it will be possible for any settlement payments to be made in 2008. It is unclear how long it will take the appellate court to schedule briefing and a hearing in this case, but it may not be completed until late in 2009. Please check this website for further updates.
If you have any questions about the settlement, please feel free to contact Elizabeth Alexander or Daniel Hutchinson at (415) 956-1000. If you have any questions about your particular Claim Form or the claims process, please contact the Claims Administrator directly at (866) 854-6038.
Attorney Contact Information
Plaintiffs’ Class Counsel:

Kelly M. Dermody
Lieff Cabraser Heimann & Bernstein, LLP
(415) 956-1000

Adam T. Klein
Outten & Golden, LLP
(212) 245-1000

James M. Finberg
Altshuler Berzon LLP
(415) 421-7151

Morgan Stanley:

James Wiggins
Morgan Stanley Corporate Communications
(914) 225-6161
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