Ex-Morgan Stanley Advisors Sue DOL Over Deferred Compensation Opinion

Core Viewpoint - Several former Morgan Stanley advisors are suing the U.S. Department of Labor, claiming it improperly sided with Morgan Stanley in a legal dispute over deferred compensation claims [1][4]. Group 1: Legal Dispute Background - In September, the Labor Department issued an advisory opinion favoring Morgan Stanley, stating that the wirehouse's deferred incentive compensation program is not protected under federal law [2][3]. - The former advisors argue that the Labor Department's decision violates its own procedures and misinterprets ERISA regulations [5][6]. Group 2: Current Legal Actions - The lawsuit was filed in New York's Southern District against Labor Secretary Lori Chavez-DeRemer and other DOL executives, aiming to challenge what the advisors view as illegal agency overreach [4][5]. - The ongoing class action suit claims that Morgan Stanley denied the advisors millions in deferred compensation when they transitioned to other firms [6]. Group 3: Previous Court Rulings - In 2023, a federal judge partially ruled in favor of Morgan Stanley, mandating that advisors must pursue their claims through private arbitration, while also affirming that the plans fall under federal law [7].