Morgan Stanley Motion to Dismiss Denied in Whistleblower Suit

For immediate release:

Morgan Stanley Motion to Dismiss Denied in Whistleblower Suit

Bank Must Face Dodd-Frank and Sarbanes-Oxley Claims for Firing Brokers in 2011

July 14, 2016, New York, NY – Yesterday, a judge in the United States District Court of the Southern District of New York denied Morgan Stanley’s Motion to Dismiss a $20 million suit brought by two former employees, Jamie Feldman-Boland and James Boland.  The Plaintiffs, a married couple, allege the bank fired them for engaging in protected whistleblowing activities.  Feldman-Boland and Boland are represented by Alice K. Jump, Partner of Reavis Parent Lehrer LLP, a multi-practice firm based in New York City that specializes in litigation, employment and other areas of the law.

The Opinion and Order by District Judge William H. Pauley III rejected Morgan Stanley’s argument that a prior decision by the New York City Commission on Human Rights (“NYCCHR”) foreclosed the Plaintiffs’ Dodd-Frank and Sarbanes-Oxley (“SOX”) claims.  Judge Pauley also found that the Plaintiffs had sufficiently alleged that they engaged in protected activity and that there was a causal connection between the protected activity and adverse employment action, including their termination.  The Opinion further concluded that Plaintiffs could allege damages for emotional distress under both statutes.

“We are gratified by Judge Pauley’s well-reasoned decision which recognizes that plaintiffs should be given a full and fair opportunity to litigate their important Dodd-Frank and SOX claims,” said Reavis Parent Lehrer LLP Partner Alice K. Jump.

The case is Feldman-Boland and Boland v. Morgan Stanley, case number 1:15-cv-06698, in the U.S. District Court for the Southern District of New York.

Read Law360’s coverage of the Opinion here (PDF).  Please direct media inquiries to RPL Communications Manager Alison R. Park.

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