Morgan Stanley Dodges Class Action Over Insurer Kickbacks

Law360, Los Angeles (February 25, 2014, 4:12 PM EST) -- A New York federal judge on Tuesday tossed an Alabama medical laboratory's proposed class action against Morgan Stanley & Co. Inc. for allegedly receiving kickbacks from insurers that administer its 401(k) plan, saying the lab didn’t show the transactions violated the Employee Retirement Income Security Act.

Last year, Birmingham, Ala.-based Skin Pathology Associates Inc. sued Morgan Stanley for allegedly encouraging the lab to use ING Life Insurance & Annuity Co. to administer its employees' 401(k) plan because ING paid the brokerage firm extra fees.

The lab...
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