Class Counsel Announce Filing of Gender Discrimination Class Action Filed against Morgan Stanley; National Class Action Lawsuit in Federal Court Charges Violations of Federal and State Civil Rights Laws

Business Wire, June 22, 2006

SAN FRANCISCO -- A female Financial Advisor at Morgan Stanley DW, Inc. filed a national class action lawsuit today in federal court in San Francisco, charging the company with gender discrimination. Morgan Stanley DW, Inc. is the retail brokerage arm of Morgan Stanley.

The lawsuit, Jaffe v. Morgan Stanley DW, Inc., charges that Morgan Stanley DW, Inc. engaged in a pattern and practice of gender discrimination against its female Financial Advisors in compensation by favoring male Financial Advisors in the distribution of business opportunities and accounts and other terms and conditions of employment throughout the company.

The named plaintiff, Daisy Jaffe, alleges violations of federal and state laws, including Title VII of the Civil Rights Act of 1964 and the California Fair Employment and Housing Act on behalf of herself and the class. She also claims that Morgan Stanley DW, Inc. discriminated against her individually based on her age in violation of the Age Discrimination in Employment Act. The named plaintiff and class members are represented by attorneys from Lieff, Cabraser, Heimann & Bernstein, LLP in San Francisco, California, and Nashville, Tennessee, and Outten & Golden LLP in New York, New York.

Plaintiff Daisy Jaffe, a former Morgan Stanley DW, Inc. Financial Advisor from the company's San Mateo, California office, stated, "Although I was an excellent, hardworking Financial Advisor, Morgan Stanley favored my male colleagues, who were frequently less qualified than I was. Because of Morgan Stanley's favoritism, my compensation was lower than less-qualified male brokers in my office."

"Morgan Stanley's policies and practices deny female brokers the same opportunities for compensation that are routinely provided to their male colleagues," said plaintiffs' attorney Kelly M. Dermody of Lieff, Cabraser, Heimann & Bernstein, LLP of San Francisco, California. "By favoring men over women, the company makes it possible for male brokers to earn more than female brokers, even where the women equal or exceed the men in their effort and qualifications."

"The discrimination at Morgan Stanley reflects a continuing problem on Wall Street, where women continue to be treated like second-class employees, no matter how well qualified they are," said plaintiffs' attorney Adam T. Klein of Outten & Golden LLP of New York, New York. "Because investment banks and brokerage firms refuse to make changes on their own to remedy ongoing discriminatory practices in the financial services industry, it is up to female brokers to protect themselves and their livelihoods through cases like this."

The complaint charges that, among other things, Morgan Stanley discriminates against female Financial Advisors in compensation by assigning fewer and less valuable accounts to female Financial Advisors and by giving them fewer business leads and referrals than men, which results in male brokers having more accounts and greater compensation.

Morgan Stanley DW, Inc. is the retail broker-dealer subsidiary of Morgan Stanley. Morgan Stanley DW, Inc. has approximately 525 retail locations throughout the US, and provides comprehensive financial planning advice. It employs approximately 9,500 Financial Advisors.

People interested in the lawsuit may obtain further information by visiting: www.genderlawsuitagainstmorganstanley.com, or calling 1-800-948-2106 to leave a message for plaintiffs' counsel. Members of the media can also obtain a copy of the complaint and this press release by contacting Amy Yu at ayu@lchb.com or 415-956-1000.