Morgan Stanley said it will drop its remaining claims in a lawsuit against Joseph 'Chip' Skowron after a federal judge ordered the former fund manager and convicted inside trader to repay $31m in compensation.
Bloomberg reports that Kevin Marino, a lawyer for Morgan Stanley, said in a letter to U.S. District Court Judge Shira Scheindlin in Manhattan that it has decided to drop the remaining claims for breach of contract and fraud.
Skowron has already reimbursed Morgan Stanley $6.4m for compensation he received while working as a fund manager at the bank’s FrontPoint Partners, Marino said in his letter to the court. He asked the judge for a final order directing Skowron to reimburse the bank for the remaining $24.6m.
'The judgment that we secured last month was clearly in excess of Mr. Skowron’s assets, so to continue to pursue additional claims was pointless,' Marino said in a phone interview. 'We secured a judgment so now we’ll proceed to collecting on it'.
To access the complete Bloomberg article hit the link below