Morgan Stanley Sued for Mismanaging 401(k) Plan

Posted on September 12th, 2016 at 8:55 AM
Morgan Stanley Sued for Mismanaging 401(k) Plan

From the Desk of Jim Eccleston at Eccleston Law LLC:

Last month, a lawsuit was filed against Morgan Stanley in Manhattan federal court. Morgan Stanley was accused of mismanaging the firm’s 401(k) retirement plan and costing 60,000 employees hundreds of millions of dollars by picking inappropriate and high-priced investments in order for the firm to profit.  The former employee’s suit seeks class action status for all who were enrolled in the $8 million plan from March 2010 to February 2016.  

The plaintiff alleges that Morgan Stanley failed to act in the best interest of its customers by placing them in poor or high fee 401(k) plans.

The lawsuit complaint compared the mutual funds used by Morgan Stanley in its 401(k) policies with other mutual funds from similar firms around the country. The plaintiff found that the small-cap growth fund underperformed 99 percent of similar funds in 2014 and 94 percent in 2015.                 

 The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

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