Correro Fishman and Pearl Malarney Smith File Class Action Suits Against Morgan Stanley and Top Brokers on Behalf of Retirees

Attorneys for former Eastman Kodak and Xerox employees announced the filing of multi-million-dollar class actions, totaling over $145,000,000, in New York State Supreme Court against Morgan Stanley & Company (NYSE: MS) and two of its brokers: Michael J. Kazacos and David Isabella. The class actions are brought on behalf of all Morgan Stanley customers who were falsely promised they could retire early and safely live off their retirement funds. Many of these customers now have a fraction of their life savings remaining.

Plaintiffs' attorneys include Robert J. Pearl of Rochester-based Pearl Malarney Smith, and Joe Peiffer of New Orleans-based Correro Fishman Haygood Phelps Walmsley & Casteix, L.L.P.

The class actions show that from 1991 through 2001, Morgan Stanley, Kazacos and Isabella typically targeted blue-collar employees of Kodak and Xerox who were in their early to mid 50s. Through extensive advertising and ongoing seminars, class members were told they could retire early while withdrawing 10% of their portfolio annually. They were assured by Kazacos and Isabella that they would still have "a comfortable income for life."

The Financial Industry Regulatory Authority (FINRA) has been investigating the scheme involving Morgan Stanley, Kazacos and Isabella for more than fourteen months. Pearl, Peiffer and their clients are cooperating with investigators. They anticipate that regulators will soon release results of their investigation.

In a response to these suits, Morgan Stanley issued a statement claiming that previous allegations against these brokers were determined to be unfounded. Commenting on this statement, Peiffer said, "That's news to me. A quick look at the public documents shows that Morgan Stanley has paid out millions of dollars to former Kazacos customers, and that the regulatory authorities are investigating his behavior."

The record of Morgan Stanley's payment to Kazacos' former customers and the regulator attention it generated is available by searching "Michael James Kazacos" on the Financial Industry Regulatory Authority's website at http://www.finra.org/InvestorInformation/InvestorProtection/ChecktheBackgroundofYourInvestmentProfessional/index.htm . Kazacos' CRD number is 708547.

FOR FURTHER INFORMATION, CONTACT: Robert J. Pearl Pearl Malarney Smith, P.C. P: 585-381-3820 C: 239-293-6889 Email Contact Joe Peiffer Correro Fishman Haygood Phelps Walmsley & Casteix, L.L.P. P: 504-586-5259 C: 504-388-3912 Email Contact