Morgan Stanley Vows to Remediate Client Losses Due to System Outage
From the Desk of Jim Eccleston at Eccleston Law LLC:
As detailed in an earlier post in the Eccleston Law Blog, Morgan Stanley Wealth Management experienced a system outage on March 25. According to Morgan Stanley, the outage, which lasted roughly 4 and a half hours, was caused by a bug in third-party software. During the outage, Morgan Stanley brokers were able to place trades via a back-up system. However, the back-up system was slower than the normal system.
In an effort to rectify the situation, Morgan Stanley announced that it is making adjustments to clients who were negatively impacted by the firm’s system outage. Morgan Stanley did not specify how these adjustments would be calculated or provide any other details.
Morgan Stanley is not the only firm to experience system outages recently. Robinhood, a mobile trading app, experienced multiple system outages earlier in March. Additionally, Bank of America’s Merrill Edge also experienced a system outage on March 25. This outage lasted approximately 20 minutes.
The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities Fraud, Compliance Protection, Breach of Fiduciary Duty, FINRA Matters, and much more. 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.
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