Bloomberg reports that a former Morgan Stanley stockbroker is suing the firm as he claims that he lost a $250,000 inheritance investing in stocks tipped by the securities house's own research analysts.
John Tripi, 30, has filed suit claiming breach of contract, breach of fiduciary duty and negligence. He is seeking $1m in losses and damages for investments in Copper Mountain Networks, Covad Communications and Priceline.com and claims that Morgan Stanley tipped the stocks as it wanted to gain favour with the companies and hoped to win or maintain advisory or underwriting work from them.
A spokesman for Morgan Stanley described the claim as 'preposterous' and said 'John Tripi was a licensed broker who was well trained in the principles of diversification. He chose to ignore his training when he speculated on his own account. He has nobody to blame but himself for his financial position'.