In the News The Wall Street Journal

Business World: Once Again, Who's to Blame for Bubble Mania?

Summary:

In a telling win for Morgan Stanley, the arbitrators for the New York Stock Exchange awarded only $50,000 to plaintiffs who lost most of their $11 million dollars in Microsoft stock options while receiving advice from Morgan Stanley.  The plaintiff’s lawyer acknowledged that “the brokers did nothing wrong would be a fair characterization of the decision.”  Evidence that surfaced in arbitration showed that the plaintiffs rejected Morgan Stanley’s advice to protect themselves with a “collar” and that they borrowed heavily to build their portfolio.

 

This article appeared in its entirety in the May 22, 2002 edition of The Wall Street Journal.