Morgan Stanley Employee Class Claims Fall Short

Law360, New York (January 19, 2011, 2:08 PM EST) -- A federal judge has nixed a proposed class action accusing Morgan Stanley Smith Barney LLC of forcing employees to conduct securities business with the company, saying the plaintiffs used weak state law claims to circumvent federal pleading standards.

The putative class used artful language to disguise typical securities claims as employment law allegations under the California Business and Professions Code, a practice expressly barred by the Securities Litigation Uniform Standard Act of 1998, Judge S. James Otero ruled Tuesday in the U.S. District Court for the...
To view the full article, register now.