Item: LaxNeville
Rating: 5
Author: Anonymous

Lax & Neville Pursuing Unpaid Deferred Compensation Claims Against Morgan Stanley

On November 22, 2023, the Southern District of New York granted Morgan Stanley's motion to compel arbitration in the class action Shafer, et. al. v. Morgan Stanley, et. al. (Case 1:20-cv-11047-PGG).

Plaintiffs, former Morgan Stanley financial advisors, sued Morgan Stanley asserting that Morgan Stanley violated the Employee Retirement Income Security Act of 1974 ("ERISA") by not paying Plaintiffs all of their deferred compensation when they resigned from Morgan Stanley, and Morgan Stanley moved to compel arbitration on June 29, 2022. The Court's decision forces Plaintiffs and any similarly situated former Morgan Stanley financial advisor to file their claims for unpaid deferred compensation in FINRA Arbitration.

In its opinion, the Court held that Morgan Stanley's Compensation Incentive Plan and Equity Incentive Plan are ERISA plans and "'individual account plans,'" which under ERISA "means a pension plan which provides for an individual account for each participant and for benefits based solely upon the amount contributed to the participant's account…." (Order, p. 44). The Court's holding may significantly strengthen FINRA arbitration claims against Morgan Stanley, which primarily depend on the applicability, and Morgan Stanley's violation, of ERISA.

Lax & Neville LLP has extensive experience successfully pursuing deferred compensation claims in FINRA arbitration, including claims under ERISA. Over the past several years, for example, this firm has won more than $35 million in unpaid deferred compensation, interest, and costs and attorneys' fees for more than two dozen former Credit Suisse investment advisers.

If you are a former Morgan Stanley financial advisor who had deferred compensation when you left Morgan Stanley, please contact us at 212-696-1999 or email Barry Lax at blax@laxneville.com or Brian Neville at bneville@laxneville.com to discuss your potential claims.

★★★★★

The Lax & Neville team were total professionals in handling our case. They've clearly had quite a bit of experience handling complex legal matters in many jurisdictions and courts. I was impressed with their professionalism coupled with persistence in arguing a very complete and well-structured case. I highly recommend their services. Anonymous

I am very, very happy with the outcome of my case and my experience with Lax Neville could not have been better. The entire team of attorneys and staff are real professionals, they always had time to answer my many questions about my case. I was treated with compassion and respect. I am so grateful I chose to work with Lax Neville. Anonymous

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What transpired at the [redacted] was nothing less than a truly masterful and exceptional experience regarding your intelligence, professionalism, preparedness for my case, teamwork and erudite knowledge pertaining to Securities Law, FINRA and the SEC. The facility and ease of how the case was handled, the systematic questioning of all the witnesses to obtain the facts necessary to prove our case, the preparation of the critically conclusive information and documents, the commanding coup de gras closing argument and your tireless consideration and respect for the Panel and [redacted] was, is and will continue to epitomize my feelings and conclusion that what transpired over those long three days was nothing less than raw and unabashed brilliance. Anonymous

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