Former Morgan Stanley Client Wins FINRA Arbitration for $11.5 Million

Morgan Stanley

In November 2022, a former client of Morgan Stanley won an award in a FINRA arbitration for compensatory damages for $11.5 million in compensatory damages, the non-refundable $400 filing fee, plus $157,656.81 in costs for losses sustained from call writing strategy resulting in large positions of technology stocks in the customer’s accounts. The investors were clients of broker Craig Thistlethwaite (CRD# 2507050), who was an unnamed party in this case.

The causes of action included: “respondeat superior; negligence; breach of fiduciary duty; failure to supervise; breach of FINRA rules; breach of contract; fraud; unauthorized trading and breach of FINRA Rules 2010, 2020, and 3260; and violation of the Florida Securities and Investor Protection Act.” The causes of action related to Morgan Stanley’s “alleged covered call writing strategy resulting in large positions of technology stocks in Claimants’ accounts, including but not limited to, Nvidia Corporation (”NVDA”), Tesla Motors (“TSLA”), Apple Computers (“AAPL”), Salesforce (“CRM”), Microsoft Corporation (“MSFT”), and other stocks being called away from Claimants’ Trust Account.” The FINRA arbitration hearing was conducted in Tampa, Florida.

Craig Thistlethwaite Customer Complaints 

He has been registered with Morgan Stanley in Perrysburg, Ohio since 2009. He has also been the subject of two customer complaints between 2021 and 2022, according to his CRD report:

February 2022. “Claimant alleges, inter alia, unsuitability with respect to stock options strategy – May 2015 to May 2021.” The claim is currently pending.

August 2021. “Claimant alleges, inter alia, breach of fiduciary duty with respect to stock option trading strategy – 2010 to 2015.” The claim is currently pending.

Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Morgan Stanley may be liable for investment or other losses suffered by Craig Thistlethwaite’s customers.

How to File a Claim Against Morgan Stanley and Broker Craig Thistlethwaite

Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.