Morgan Stanley (NYSE: MWD) announced that it will appeal todays verdict in the suit brought against it by Coleman (Parent) Holdings. Morgan Stanley said it has multiple grounds on which to appeal, intends to pursue them to the fullest extent, and is confident the decision will be reversed.
"The verdict, while disappointing, is not surprising, given the unprecedented and highly prejudicial rulings imposed by the trial judge," the company said in a statement. "Morgan Stanley was not permitted to defend itself on the merits. As a result, the jury heard allegations, instead of true facts, and Morgan Stanley was denied a fair trial. Far from being part of the Sunbeam fraud, Morgan Stanley was a victim of that fraud, losing $300 million when Sunbeam collapsed, one of the many true facts that the jury was not allowed to hear."
In the second phase of the trial, the jury will consider whether punitive damages should be assessed. Morgan Stanley requested a full and fair hearing in that phase so the jury, for the first time, could hear the true facts, but the trial judge denied that request. Morgan Stanley believes that any award of punitive damages would be inappropriate and legally deficient.
Morgan Stanley is a global financial services firm and a market leader in securities, investment management and credit services. With more than 600 offices in 28 countries, Morgan Stanley connects people, ideas and capital to help clients achieve their financial aspirations.