Lawyers have filed a class action suit against Morgan Stanley for a group of former Eastman Kodak employees they say were persuaded to retire early and invest their retirement assets through Morgan Stanley.
According to the Dow Jones News Wire, the class action is seeking nearly a half billion dollars in damages from Morgan Stanley because its brokers advised the Kodak employees retire early with promises of financial security that never materialized. One of the attorneys estimates 1,000 investors or more are involved. If so, the claim seeks approximately $500,000 per former Kodak retiree.
Firms which report the results of class action cases estimate that recovery in securities class action cases is LESS THAN THREE PERCENT of the actual losses to investors! If one were to assume that 1,000 Kodak retirees lost, on average, $500,000, each may receive LESS THAN $15,000 according to this average.
Claims against brokerage firms for enticing employees to retire early in order to invest their retirement assets are not uncommon. In fact, such retirees’ claims are usually much more likely to be successful than those of other investors. A few have even resulted in awards of full recovery of losses, plus the retiree’s legal fees and costs. Securities attorneys report that brokerage firms are often likely to settle such individual claims for the majority of the losses.
As well, individual claims for investment fraud victims usually take much less time than lengthy class actions. For example, claim forms are now being sent to Enron investors based on their losses from 1997 to 2001. Eight to ten years is a long time to wait and, in fact, many Enron shareholders have likely misplaced or destroyed their records.
When class action claims are filed, class members can instead chose to hire their own attorney. By doing this, they often recover far more than victims who simply accept whatever outcome is obtained in the class action.
Class action cases for a few hundred or a few thousand dollars in losses by each victim can make sense. Even a small recovery is better than none. Yet, those with claims of $50,000 or more should instead discuss their options with an attorney skilled that area of the law and in representing victims in their own claims. Free consultations can be available to do this.
The securities fraud speicialists at Shepherd Smith and Edwards law firm have represented thousands of investors in securities arbitration against hundreds of securities firms, including Morgan Stanley and other major U.S. stock brokerage firms. Our experienced attorneys and staff assist retirees and other victims of wrongdoing of investment brokers, advisors or their firms. If you or someone you know might be a victim of such conduct, contact Shepherd Smith and Edwards for a free case evaluation by one of our attorneys.