Morgan Stanley: damages dwarf litigation reserve

Morgan Stanley's $360 million reserve was blown to bits by the $604 million damage verdict handed down today. Punitive damages are still to be determined. While there are still opportunities for mediation and appeal, there is no doubt this case will be amplifying spoliation concerns for the near future.

Perelman started the trial with an advantage after the judge in the case punished Morgan Stanley for failing to turn over e- mails related to the 1998 Coleman deal. She ordered jurors to assume Morgan Stanley helped Sunbeam inflate its earnings. To recover damages, Perelman only had to prove that he relied on misstatements by Morgan Stanley or other parties to the transaction about Sunbeam's finances.
Post A Comment / Question

Remember personal info?