Morgan Stanley Data Security Settlement

A Settlement has been reached with Morgan Stanley Smith Barney LLC (“Morgan Stanley” or “Defendant”) in a class action lawsuit regarding the decommissioning or retiring of information technology (“IT”) equipment that contained client data that occurred in 2016 and 2019 (“the Data Security Incidents”). Morgan Stanley issued notices to customers regarding the Data Security Incidents in July 2020 and/or June 2021. The Settlement created a fund of $60 million, which will be used to provide substantial benefits to Settlement Class Members including at least 24-months of fraud insurance coverage, reimbursement to the members of the Settlement Class who filed a valid claim for out-of-pocket losses and lost time researching and remedying the effects of the Data Security Incidents, as well as to pay Plaintiffs’ attorneys’ fees, costs, and expenses, and a service award for each of the named Plaintiffs.

In addition, Morgan Stanley will hire a third party to work for a period of 12 months to attempt to locate and retrieve additional IT devices which have been sold to third parties. Morgan Stanley will also separately pay reasonable costs of notice and administration of the Settlement.

The lawsuit asserts claims against Morgan Stanley relating to the Data Security Incidents. Plaintiffs allege that in 2016 and 2019, Morgan Stanley failed to properly dispose of certain IT assets and that, as a result, unauthorized third parties may have gained access to Morgan Stanley’s clients’ private information, including, but not limited to, names, work and home addresses, Social Security numbers, driver’s license numbers, income, asset value, asset holding information, passport information, telephone numbers, dates of birth and other personal information (collectively, “PII”). Some of these devices that may contain customer PII were sold on the internet and/or remain unaccounted for.

Morgan Stanley denies all the claims, denies any liability whatsoever, and believes that no member of the Settlement Class, including Plaintiffs, has sustained any damages or injuries due to the Data Security Incidents.

The Settlement Class includes all individuals with existing or closed Morgan Stanley accounts established in the United States who received the notice letters sent by Morgan Stanley regarding the Data Security Incidents in July 2020 and/or June 2021. If you are a member of the Settlement Class, you should have received a Settlement notice from the Settlement Administrator in the mail or by email. That Notice includes a unique code for you to verify your identity to receive certain Settlement benefits. If for some reason you have not received a unique code, but believe you are a Settlement Class Member, please call 1-855-604-1744 (Toll-Free) to verify your identity and receive further information.

Your Legal Rights and Options in This Settlement

Submit a Claim Form Postmarked by August 11, 2022	This was the only way to receive a monetary payment for losses suffered as a result of the Data Security Incidents. The deadline to file a claim has passed.
Ask to be Excluded from the Settlement Postmarked by July 12, 2022	If you asked to be excluded, you will not receive a payment or any other Settlement benefits, but you retained your right to bring your own action against Morgan Stanley related to the Data Security Incidents. The deadline to exclude yourself has passed.
Object to the Settlement Postmarked by July 12, 2022	You could have written the Court about why you did or did not like the Settlement. The deadline to do so has passed.
Go to the Final Approval Hearing August 5, 2022, at 9:30 a.m. ET	The Final Approval Hearing was held and the Settlement was granted Final Approval. No payments will be made nor will enrollment in Financial Shield begin until the Effective Date of the Settlement.
Do Nothing	If you did nothing, you will not get a monetary payment from this Settlement. Class Members are entitled to enroll in Financial Shield Services for a period of at least 24 months from the Effective Date of the Settlement, which provides broad fraud insurance coverage. You gave up your rights to submit a claim in this Settlement or to bring a separate action against Morgan Stanley related to the Data Security Incidents.

These rights and options—and the deadlines to exercise them—are explained further on the Frequently Asked Questions page of this website.