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Morgan Stanley Class Action Data Breach Lawsuit Filed

Posted on behalf of Arnold Law Firm in
data breach graphic with open lock over screen with binary codePlaintiffs Sylvia Tillman, Amresh Jaijee, Vivian Yates, Richard Gamen, and Cheryl Gamen filed a class-action lawsuit accusing Morgan Stanley Smith Barney, LLC, of failing to properly safeguard their personal information on behalf of all other similarly-situated clients. On July 10, 2020, one of the world’s foremost financial institutions Morgan Stanley notified its 15,400 brokers and affected current and former clients of two separate data security incidents involving confidential personal information left on decommissioned computer equipment.

Data Center Event

In 2016, Morgan Stanley closed two data centers and decommissioned computer equipment that processed client information in both locations. Some servers and other hardware were sold to recyclers, however, these devices were not sufficiently scrubbed of information and contained unencrypted client data. Morgan Stanley discovered this incident over a year ago but did not start disclosing the data breach until March 2020.

WAAS Device Event

In 2019, in a separate event, Morgan Stanley replaced computer servers (WAAS devices) that contained personal information in local branch offices. During a recent inventory, some of the decommissioned equipment was missing. A known software flaw is thought to have resulted in data remaining on the missing disks in unencrypted form. Compromised sensitive information that may have remained on the involved devices includes:
  • Contact information
  • Dates of birth
  • Asset values
  • Holdings data
  • Social Security numbers
  • Account names
  • Account numbers (for Morgan Stanley and any linked bank accounts)
  • Passport numbers
Founded in 1935, Morgan Stanley employs 60,000 people in 500 offices in 41 countries. The global financial leader is headquartered in New York City and reported $4 billion in 2020 first-quarter revenues. The company advises 3.5 million people around the globe and manages $2 trillion in assets. In February, Morgan Stanley announced that it was buying online trading firm E*Trade Financial Corp. for $13 billion in stock. The plaintiffs are represented by M. Anderson Berry and Leslie Guillon of Clayeo C. Arnold, A Professional Law Corp; Amanda Peterson, John A. Yanchunis, and Ryan J. McGee of Morgan & Morgan; and William “Billy” Peerce Howard and Heather H. Jones with The Consumer Protection Firm. The case was filed on July 29, 2020 in the U.S. District Court for the Southern District of New York. Sylvia Tillman et al. v. Morgan Stanley Smith Barney LLC, Case No. 1:20-cv-05914, in the U.S. District Court for the Southern District of New York.

How do I join the class?

If you received a NOTICE OF DATA BREACH, you will be included automatically in the class unless you opt-out and no further action will be required by you. Class members have a passive role throughout class action litigation. If the lawsuit is successful, all class members receive equal compensation which is awarded to all class members, regardless of the degree of harm they suffered.

If you are unsure whether your personal information may have been affected, contact the Morgan Stanley Client Service Center at 866-742-6669. Morgan Stanley is offering two years of identity protection services for affected parties and is encouraging individuals to monitor fraudulent activity and review credit reports closely.

Settlement - $3,767,000

Truck Accident

A 20-year-old man who had been married for just 12 days left home on his way to work. He was driving on Pleasant Grove Road in Sutter County in the early morning when he came upon a slow-moving truck. As he pulled out to pass the truck, the truck driver turned left in front of him. The young man attempted to steer back into his lane but his vehicle struck an un-flagged piece of metal extending from the back of the truck. He died in the resulting crash.

Expert witnesses brought in by the Arnold Law Firm proved that the truck, owned and operated by a hauling firm, should never have been on the highway that morning. Specifically, the rear and side turn signals did not work and the rear-view mirror was in a poor state of adjustment at the time of the collision. As a result, the driver, who had failed to properly inspect the vehicle before setting out that morning, couldn’t see the young man’s vehicle as it attempted to pass.

The poor condition of the truck, its lack of maintenance and the manner in which it was operated were found to be substantial factors in causing the collision that killed the young man. The testimony also established that the man had been making a lawful pass at the lawful speed limit and acted reasonably when he attempted to avoid the collision.

The man’s 20-year-old widow was awarded $3,767,000.77, his parents were awarded $185,131 and the family was reimbursed $11,899 in funeral expenses. Though money is a poor substitute for a young man’s life, this verdict demonstrates that drivers who endanger the lives of others will be held accountable for their actions.