Morgan Stanley’s Tale Of Two Document Actions

Morgan Stanley recently agreed to pay $15 million, without admitting or denying allegations, to settle charges involving “numerous misstatements” involving document and email retention, but their document woes are not over. According to The Wall Street Journal, the settlement with the Securities and Exchange Commission angered lawyers who represented small investors because it did not include a mechanism to allow them access to the e-mails, which could be used to support their claims. Morgan Stanley has changed its management and upgraded its document-related system, but it still faces an investigation by the NASD for failing to produce relevant documents from an earlier time, the Journal reports, citing people familiar with the matter. Morgan Stanley now provides investors access to e-mails, but the investment bank’s gesture has been met with relatively little enthusiasm. Morgan Stanley says it sent 1,600 letters to investors offering access, but only about 100 lawyers took the bank up on its offer. And from that, says the Journal, not a single customer ahs refilled a complaint based on new information gleaned from the documents.