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Case Status:    DISMISSED    
On or around 04/21/2006 (Date of order of final judgment)

Filing Date: October 16, 2003

On December 19, 2003 plaintiffs moved for consolidation of related complaints. The judge granted the motion in February 2004 and appointed lead plaintiffs and their selection of lead counsel. A Consolidated Amended Complaint was then filed on April 16, 2004 charging defendants with violations of Sections 11, 12(a) and 15 of the 1933 Act and Sections 10(b) and 20 of the 1934 Act. Defendants filed their motions to dismiss the complaint on June 2, 2004. After nearly two years of hearing arguments over the pending motions, a Clerk's Judgment was entered adopting the Judge's order in favor of the defendants and dismissing the action with prejudice on April 21, 2006.

The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5. Plaintiffs seek to pursue remedies under the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Advisers Act of 1940.

According to the complaint, this action charges Morgan Stanley with engaging in an unlawful and deceitful course of conduct designed to improperly advantage defendants to the detriment of plaintiffs and other members of the class. As part and parcel of defendants' unlawful conduct, defendants, in clear contravention of their disclosure obligation and fiduciary responsibilities, failed to properly disclose that Morgan Stanley Funds, instead of Mutual Funds own and manage by other companies, by organizing internal contest offering various prizes to brokers who sold the most in proprietary funds.

Specifically, the complaint alleges that Morgan Stanley failed to disclose the sales contest to investors and managers were told not to mention the contest in writing. Thus, Morgan Stanley brokers were urging investors to purchase in-house funds-not because they were prudent investments, but because the brokers and managers received up to $100,000 in cash rewards. Morgan Stanley intentions were to generate $5.27 billion in sales of Morgan Stanley mutual funds including its Van Kampen line in 2002. The company would award a $15,000 'prize' to the 'overall top selling team in a region', provided the team 'also hit 70% of its sales goal during the contest.'

The Funds, and the symbols for the respective Funds are named as follows:

Global/International Funds
Morgan Stanley European Growth Fund (EUGAX; EUGBX; EUGCX; EUGDX)
Morgan Stanley Fund of Funds - International Portfolio (EUGAX; EUGBX; EUGCX; EUGDX)
Morgan Stanley Global Advantage Fund (GADAX; GADBX; GADCX; GADDX)
Morgan Stanley Global Dividend Growth Securities (GLBAX; GLBBX; GLBCX; GLBDX)
Morgan Stanley Global Utilities Fund (GUTAX; GUTBX; GUTCX; GUTDX)
Morgan Stanley International Fund (INLAX; INLBX; INLCX; INLDX)
Morgan Stanley International SmallCap Fund (ISMAX; ISMBX; ISMCX; ISMDX)
Morgan Stanley International Value Equity Fund (IVQAX; IVQBX; IVQCX; IVQDX)
Morgan Stanley Japan Fund (JPNAX; JPNBX; JPNCX; JPNDX)
Morgan Stanley Latin American Growth Fund (LATAX; LATBX; LATCX; LATDX)
Morgan Stanley Pacific Growth Fund (TGRAX; TGRBX; TGRCX; TGRDX)

Growth Funds
Morgan Stanley 21st Century Trend Fund (TCTAX; TCTBX; TCTCX; TCTDX)
Morgan Stanley Aggressive Equity Fund (AEQAX; AEQBX; AEQCX; AEQDX)
Morgan Stanley All Star Growth Fund (ALLAX; ALLBX; ALLCX; ALLDX)
Morgan Stanley American Opportunities Fund (AMOAX; AMOBX; AMOCX; AMODX)
Morgan Stanley Biotechnology Fund (BTKAX; BTKBX; BTKCX; BTKDX)
Morgan Stanley Capital Opportunities Trust (CPOAX; CPOBX; CPOCX; CPODX)
Morgan Stanley Developing Growth Securities (DGRAX; DGRBX; DGRCX; DGRDX)
Morgan Stanley Financial Services Trust (FSVAX; FSVBX; FSVCX; FSVDX)
Morgan Stanley Growth Fund (GRTAX; GRTBX; GRTCX; GRTDX)
Morgan Stanley Health Sciences Trust (HCRAX; HCRBX; HCRCX; HCRDX)
Morgan Stanley Information Fund (IFOAX; IFOBX; IFOCX; IFODX)
Morgan Stanley KLD Social Index Fund (SIXAX; SIXBX; SIXCX; SIXDX)
Morgan Stanley Market Leader Trust (MLDAX; MLDBX; MLDCX; MLDDX)
Morgan Stanley Mid-Cap Value Fund (MDFAX; MDFBX; MDFCX; MDFDX)
Morgan Stanley Nasdaq-100 Index Fund (NSQAX; NSQBX; NSQCX; NSQDX)
Morgan Stanley Natural Resource Development Securities (NREAX; NREBX; NRECX; NREDX)
Morgan Stanley New Discoveries Fund (NDFAX; NDFBX; NDFCX; NDFDX)
Morgan Stanley Next Generation Trust (NGTAX; NGTBX; NGTCX; NGTDX)
Morgan Stanley Small-Mid Special Value Fund (JBJAX; JBJBX; JBJCX; JBJDX)
Morgan Stanley Special Growth Fund (SMPAX; SMPBX; SMPCX; SMPDX)
Morgan Stanley Special Value Fund (SVFAX; SVFBX; SVFCX; SVFDX)
Morgan Stanley Tax-Managed Growth Fund (TGXAX; TGXBX; TGXCX; TGXDX)
Morgan Stanley Technology Fund (TEKAX; TEKBX; TEKCX; TEKDX)

Growth & Income Funds
Morgan Stanley Allocator Fund (ALRAX; ALRBX; ALRCX; ALRDX)
Morgan Stanley Balanced Growth Fund (BGRAX; BGRBX; BGRCX; BGRDX)
Morgan Stanley Balanced Income Fund (BINAX; BINBX; BINCX; BINDX)
Morgan Stanley Convertible Securities Trust (CNSAX; CNSBX; CNSCX; CNSDX)
Morgan Stanley Dividend Growth Securities (DIVAX; DIVBX; DIVCX; DIVDX)
Morgan Stanley Equity Fund (EQFAX; EQFBX; EQFCX; EQFDX)
Morgan Stanley Fund of Funds - Domestic Portfolio (DOFAX; DOFBX; DOFCX; DOFDX)
Morgan Stanley Fundamental Value Fund (FVFAX; FVFBX; FVFCX; FVFDX)
Morgan Stanley Income Builder Fund (INBAX; INBBX; INBCX; INBDX)
Morgan Stanley Real Estate Fund (REFAX; REFBX; REFCX; REFDX)
Morgan Stanley S&P 500 Index Fund (SPIAX; SPIBX; SPICX; SPIDX)
Morgan Stanley Strategist Fund (SRTAX; SRTBX; SRTCX; SRTDX)
Morgan Stanley Total Market Index Fund (TMIAX; TMIBX; TMICX; TMIDX)
Morgan Stanley Total Return Trust (TRFAX; TRFBX; TRFCX; TRFDX)
Morgan Stanley Utilities Fund (UTLAX; UTLBX; UTLCX; UTLDX)
Morgan Stanley Value Fund (VLUAX; VLUBX; VLUCX; VLUDX)
Morgan Stanley Value-Added Market Series/Equity Portfolio (VADAX; VADBX; VADCX; VADDX)

Income Funds
Active Assets Money Funds (AACXX; AAGXX; AVIXX; AAMXX; AATXX; AISXX)
Morgan Stanley Active Assets California Tax-Free Trust (AACT)
Morgan Stanley Active Assets Government Securities Trust (AAGS)
Morgan Stanley Active Assets Institutional Money Trust (AAIF)
Morgan Stanley Active Assets Money Trust (AAMT)
Morgan Stanley Active Assets Tax-Free Trust (AATF)
Morgan Stanley Flexible Income Trust (DINAX; DINBX; DINCX; DINDX)
Morgan Stanley Federal Securities Trust (FDLAX; FDLBX; FDLCX; FDLDX)
Morgan Stanley High Yield Securities (HYLAX; HYLBX; HYLCX; HYLDX)
Morgan Stanley Quality Income Trust (IISAX; IISBX; IISCX; IISDX)
Morgan Stanley Limited Duration Fund (MSLDX)
Morgan Stanley Limited Duration U.S. Treasury Trust (LDTRX)
Morgan Stanley Liquid Asset Fund (DWLXX)
Morgan Stanley Prime Income Trust (XPITX)
Morgan Stanley U.S. Government Money Market Trust (DWGXX)
Morgan Stanley U.S. Government Securities Trust (USGAX; USGBX; USGCX; USGDX)

Tax-Free Income Funds
Morgan Stanley California Tax-Free Daily Income Trust (DSCXX)
Morgan Stanley California Tax-Free Income Fund (CLFAX; CLFBX; CLFCX; CLFDX)
Morgan Stanley Hawaii Municipal Trust (DWHIX)
Morgan Stanley Limited Term Municipal Trust (DWLTX)
Morgan Stanley Multi-State Municipal Series Trust, Arizona Series (DWAZX)
Morgan Stanley Multi-State Municipal Series Trust, Florida Series (DWFLX)
Morgan Stanley Multi-State Municipal Series Trust, New Jersey Series (DWNJX)
Morgan Stanley Multi-State Municipal Series Trust, Pennsylvania Series (DWPAX)
Morgan Stanley New York Municipal Money Market Trust (DWNXX)
Morgan Stanley New York Tax-Free Income Fund (NYFAX; NYFBX; NYFCX; NYFDX)
Morgan Stanley Tax-Exempt Securities Trust (TAXAX; TAXBX; TAXCX; TAXDX)
Morgan Stanley Tax-Free Daily Income Trust (DSTXX)

COMPANY INFORMATION:

Sector: Financial
Industry: Investment Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol:
Company Market: ETF
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 03-CV-08208
JUDGE: Hon. Richard Owen
DATE FILED: 10/16/2003
CLASS PERIOD START: 10/01/1999
CLASS PERIOD END: 12/31/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cauley Geller Bowman Coates & Rudman LLP (Little Rock, AR)
    P.O. Box 25438, Cauley Geller Bowman Coates & Rudman LLP (Little Rock, AR), AR 72221-5438
    501.312.8500 501.312.8505 ·
  2. Cauley Geller Bowman Coates & Rudman, LLP (New York)
    200 Broadhollow, Suite 406, Cauley Geller Bowman Coates & Rudman, LLP (New York), NY 11747
    631.367.7100 631.367.1173 ·
  3. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (New York, NY)
    825 Third Avenue - 30th Floor, Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (New York, NY), NY 10022
    212.838.7797 212.838.7745 · lawinfo@cmht.com
  4. Finkelstein, Thompson & Loughran
    1050 30th Street, NW, Finkelstein, Thompson & Loughran, DC 20007
    202.337.8000 202.337.8090 · contact@ftllaw.com
  5. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  6. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
  7. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 03-CV-08208
JUDGE: Hon. Richard Owen
DATE FILED: 04/16/2004
CLASS PERIOD START: 10/01/1999
CLASS PERIOD END: 11/17/2003
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
No Document Title Filing Date
No Document Title Filing Date