Morgan Stanley Pays $4.4M To Settle Class Action

Law360, New York (June 12, 2007, 12:00 AM EDT) -- Morgan Stanley Dean Witter & Co. has agreed to pay $4.4 million to settle a class action over allegedly fraudulent metals transactions, according to papers filed in Manhattan federal court Monday.

Under the settlement, which still needs court approval, Morgan Stanley will pay $1.5 million in cash and $2.855 million in economic and remedial benefits to investors who entered into agreements with the bank to purchase precious metals between Feb. 19, 1986 and Aug. 26, 2005.

In August 2005, Selwyn Silberblatt, a Maine resident who purchased...
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