Morgan Stanley, Citigroup Put Accounts At Risk, Suit Says

Law360, New York (May 22, 2012, 8:27 PM EDT) -- Morgan Stanley Smith Barney LLC and Citigroup Global Markets Inc. were slapped Friday with a putative class action in California federal court accusing them of failing to protect customers' securities accounts while converting to a new platform.

The lawsuit claims that Morgan Stanley and Citigroup misled customers into believing their finances would be kept safe during the conversion process, but they allowed unauthorized trading that substantially depleted customer accounts.

In the suit, named plaintiff Georgia Alexander claims that her conservative retirement account was converted over to...
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