FKSA Wins $8.3 Million Arbitration Judgment Against Morgan Stanley

August 29, 2013

On August 29, 2013, a FINRA arbitration panel awarded FKSA client Amit Gupta an $8.3 million judgment against Morgan Stanley & Co. LLC and Morgan Stanley Capital Group, Inc. ("Morgan Stanley"). Mr. Gupta, formerly a top-producing commodities derivatives trader for the bank, commenced the arbitration against Morgan Stanley to recover deferred compensation that Morgan Stanley caused him to forfeit when Morgan Stanley purported to terminate Mr. Gupta for "Cause". The Panel concluded that Morgan Stanley breached its contractual obligations to Mr. Gupta by improperly terminating him for "Cause" and awarded Mr. Gupta the deferred cash and stock awards that were forfeited. The Panel stated: "Mr. Gupta received no fair, reasoned, fully-informed, individualized consideration of his circumstances. The decision to terminate him 'for Cause' was so flawed that it does not constitute a valid action by Morgan Stanley."

Mr. Gupta's case was the first case decided under FINRA's Large Case Pilot Program. FKSA partners Eric Seiler and Amy C. Brown, and associate Christopher M. Colorado represented Mr. Gupta.