Former Morgan Stanley advisers sue US Labor Department

Core Viewpoint - The U.S. Department of Labor is facing a lawsuit from former Morgan Stanley financial advisers over an allegedly illegal advisory opinion that could undermine numerous arbitration claims against the bank [1][2]. Group 1: Lawsuit Details - The complaint was filed in Manhattan federal court, asserting that the Labor Department's opinion regarding Morgan Stanley's deferred incentive compensation plan contradicts two previous court rulings [2]. - Plaintiffs argue that the September 9 opinion is arbitrary and capricious, potentially preventing financial advisers from arbitrating the cancellation of their deferred compensation [3]. - The lawsuit claims that Morgan Stanley is leveraging the opinion in ongoing arbitrations to dismiss claims as frivolous and to recover costs associated with challenging its decisions [3]. Group 2: Background Information - The plaintiffs, including Steve Sheresky, Jeffrey Samsen, and Nicholas Sutro, are among 12 former advisers who previously sued Morgan Stanley for allegedly failing to pay all deferred compensation upon their departure [4]. - The lawsuit does not name Morgan Stanley as a defendant, focusing instead on the Department of Labor's actions [4]. - The case is identified as Sheresky et al v U.S. Department of Labor et al, filed in the U.S. District Court for the Southern District of New York [5].