A federal judge upheld an $8 million arbitration ruling against Morgan Stanley in favor of a former energy trader who said he was improperly terminated after refusing to meet with New York law enforcement authorities.
Reuters reports that Judge Thomas Griesa of the U.S. District Court for the Southern District of New York confirmed the 2013 arbitration award by a Financial Industry Regulatory Authority (FINRA) panel that requires two Morgan Stanley units to pay the trader, Amit Gupta, $8 million. Griesa's order, dated Tuesday, was posted to FINRA's website on Thursday.
The arbitration award effectively restored millions of dollars in deferred compensation that Gupta was forced to forfeit because of the termination.
Morgan Stanley terminated Gupta for cause in 2009 after he declined to attend a meeting with the district attorney of New York County in Manhattan during an investigation. The firm said his action violated its code of conduct, according to the 2013 arbitration ruling.
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