Tr?id=566623520170033&ev=PageView&noscript=1

ÍøÆØ³Ô¹Ï

Morgan Stanley Ordered to Pay Huntington Bank's Brokerage Unit

Posted on June 1st, 2023 at 1:15 PM
Morgan Stanley Ordered to Pay Huntington Bank's Brokerage Unit

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï 

Morgan Stanley, along with two advisors, has been found jointly responsible for $333,000 in damages and legal fees by an arbitration panel of the Financial Industry Regulatory Authority (FINRA). The ruling is based on allegations of breach of contract relating to the advisors’ departure from Huntington Bank.

Huntington had alleged that Morgan Stanley “encouraged and induced” the advisor duo to violate their employment agreements by soliciting customers to transfer assets before their move.

This award highlights the legal challenges that Wall Street firms encounter when recruiting from regional banks and non-traditional sources, where advisors often have stricter restrictive covenants and firms are more proactive in retaining their client base.

According to AdvisorHub, the award falls short of Huntington's original claim. The bank initially requested $1.16 million in cumulative damages over five years, an additional $2.32 million in punitive damages, and $179,784 for attorney fees, which was granted. The advisors filed a counterclaim seeking $430,500 in lost business income. However, all of Morgan Stanley's and the advisors' counterclaims were dismissed by the FINRA arbitrators.

In addition to the $$333,000 damages award, the advisors agreed to a stipulated temporary restraining order in February 2021, the details of which were not provided in the award.

 

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory and disciplinary matters.

 

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I learned two important things working with ÍøÆØ³Ô¹Ï. First, I made a friend and ally with Jim and Steph for life. Secondly, and this is a crucial life lesson - if you need counsel, then seek out the very best. Jim was referred to me by a most trusted source. I've never had to hire an attorney for anything. Now, I know the value of hiring an important partner. Meticulous, thorough and detailed in preparation is the best way to describe Jim. Brilliant too, I might add. Bottom line, I would highly highly recommend Jim and Stephany for your legal needs. One of the best life decisions I've ever made.

Howard S.

LATEST NEWS AND ARTICLES

1778171646 Law
May 7, 2026
FINRA Bars Former Raymond James Broker for Refusing Testimony in Unauthorized Trading Probe

A former registered representative with Raymond James has been barred from the securities industry after refusing to cooperate with a Financial Industry Regulatory Authority (FINRA) investigation into alleged unauthorized trading activity.

1778084309 Law
May 6, 2026
FINRA Outlines Key Rulemaking Priorities and Recent Developments in Quarterly Agenda

The Financial Industry Regulatory Authority (FINRA) recently released its Quarterly Regulatory Policy Agenda, offering a detailed view of its rulemaking priorities, pending proposals, and recently approved regulatory changes.

1778000603 Law
May 5, 2026
Commonwealth Financial Network Resolves SEC Conflict of Interest Case

Commonwealth Financial Network has agreed to pay $5 million to resolve a long-standing conflict of interest case brought by the Securities and Exchange Commission, according to reporting by ThinkAdvisor.