Morgan Stanley Loses Reconsideration Bid in Ex-Adviser Suit (2)

Morgan Stanley failed to convince a federal district court to reconsider its decision that a former advisers’ proposed class action over deferred compensation was governed by ERISA.

Judge Paul G. Gardephe of the US District Court for the Southern District of New York rejected Morgan Stanley’s request in an order docketed Wednesday. His November 2023 ruling held the deferred compensation plan was covered by the Employee Retirement Income Security Act, and sent the matter to arbitration.

The arbitration issue is intertwined with the merits of the advisers’ case, the court said in the newer decision. It was necessary to resolve ...