Magazine article Information Management

Missing E-Mails Have $15 Million Price Tag

Magazine article Information Management

Missing E-Mails Have $15 Million Price Tag

Article excerpt

Without admitting or denying guilt, Morgan Stanley has agreed to settle with the Securities and Exchange Commission (SEC) for $15 million for destroying and failing to retain e-mails. Securities regulators fried a civil injunctive action against Morgan Stanley for failing to produce tens of thousands of e-mails during the SEC's investigations from December 11, 2000, through at least July 2005.

The SEC alleges in its complaint that Morgan Stanley did not diligently search for backup tapes containing responsive e-mails until 2005. Morgan Stanley also failed to produce responsive e-mails because it overwrote backup tapes. The complaint further alleges that Morgan Stanley made "numerous misstatements" regarding the status and completeness of its productions, the unavailability of certain documents, and its efforts to preserve requested e-mail.

[ILLUSTRATION OMITTED]

The Wall Street Journal reported that the firm claimed it hadn't retained e-mails related to numerous big investigations when in fact it had. The SEC alleges the firm destroyed other e-mails it was required to keep. During settlement negotiations, regulators decided not to provide recourse for small investors affected by the document problems.

Morgan Stanley's document-production problems have been a controversial topic in securities arbitration. The firm, customer lawyers have alleged, had vital documents but simply didn't produce them, making a calculated business decision that not producing documents would save them money in the long run. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.