Finra arbitrators ordered Morgan Stanley & Co. to pay $640,747 to an investor for selling her Apple Inc. stock without her consent.
The three-person all-public Financial Industry Regulatory Authority Inc. arbitration panel found Morgan Stanley liable for unauthorized trading, according to an Aug. 3 arbitration award.
The investors, Joan A. Rudnick and Oak Trail Associates, filed a claim in October 2020. In addition to unauthorized trading, their causes of action against Morgan Stanley included breach of contract and duty of loyalty, unjust enrichment and conversion.
The arbitrators awarded Rudnick and Oak Trail $482,000 in compensatory damages, $83,372 in federal and state taxes, $45,000 in attorneys’ fees, $25,000 in brokerage fees, $5,000 in expert fees, $1,863 in costs and $375 for a non-refundable filing fee.
Rudnick also asked for punitive damages, which the arbitration panel denied.
An attorney for Rudnick was not immediately available for comment.
A Morgan Stanley spokesperson declined to comment. The arbitration award states the firm denied the allegations in the statement of claim and asked that it be dismissed in its entirety.
The evidentiary hearing was based in Jersey City, New Jersey, and conducted via teleconference. Finra, which runs the arbitration system that settles disputes between customers and brokers, suspended in-person arbitration proceedings last year at the onset of the coronavirus pandemic due to social distancing concerns.
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Andrew is half-human, half-gamer. He’s also a science fiction author writing for BleeBot.