Morgan Stanley (NYSE: MWD) reaffirmed its intention to appeal the verdict in the suit brought against it by Coleman (Parent) Holdings as well as the punitive damages awarded today. 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.
"This court has done a great injustice to the employees and shareholders of Morgan Stanley. We will fight to have this decision overturned and we fully expect to prevail," said Morgan Stanley Chief Executive Officer Philip J. Purcell. "Morgan Stanley is financially strong and this latest development, while disappointing, will not impede our ability to serve our clients and grow our business."
A Morgan Stanley statement continued:
- "This damages award is legally deficient and a by-product of the unprecedented and highly prejudicial rulings imposed by the judge throughout the trial. Morgan Stanley was not permitted to defend itself on the merits in either the compensatory damages or the punitive damages phases of the trial and, consequently, was denied a fair hearing."
"Morgan Stanley requested a full and fair hearing in the punitive phase so the jury, for the first time, could hear all the facts, but the trial judge denied that request. As a result, the jury never heard the actual facts. 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 facts that the jury was not allowed to hear."
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.