CASE NO. 17-01908
Posted on Wednesday, July 1st, 2020 at 2:42 pm
Erez Law represented a Puerto Rican married couple that sustained significant losses in Puerto Rico focused closed-end funds, Puerto Rico bonds and a junk bond. The investors were customers of Angel Aquino who was employed at Morgan Stanley as a financial advisor. The Erez Law clients alleged that Morgan Stanley recommended an over-concentrated and unsuitable investment in Puerto Rico funds and bonds as well as in a junk bond issued by Harrah’s. Morgan Stanley denied the allegations. The final hearing lasted 19 days. During the final hearing, there was testimony and evidence that Morgan Stanley obstructed the investors’ efforts to sell their Puerto Rico funds. The Award is noteworthy in that the total amount awarded exceeds the requested damages and that the panel awarded $3,000,000 of the amount awarded as sanctions for Morgan Stanley’s “noncompliance with the Panel’s Orders” as it relates to orders that required Morgan Stanley to produce documents relating to the financial advisor’s termination of employment.
On December 10, 2020, the 11th Circuit Court of Appeals affirmed the Award and denied Morgan Stanley’s appeal to vacate the Award.