Morgan Stanley Sued for $170M by Home Shopping Founder’s Widow

Morgan Stanley Sued for $170M by Home Shopping Founder’s Widow

Lynnda L. Speer, the widow of cable shopping pioneer Roy M. Speer and the personal representative of Mr. Speer’s estate, is suing Morgan Stanley Wealth Management plus an adviser and branch manager for more than $170 million.

The suit was filed under the Financial Industry Regulatory Authority Inc.’s (FINRA) arbitration forum, and was disclosed in Morgan Stanley’s annual financial report filed with the SEC in March.

Alleged broker misconduct

Ms. Speer claims that the firm, branch manager Terry McCoy, and adviser Ami Forte in the Palm Harbor, Fla., branch engaged in excessive trading, unauthorized use of discretion, negligent supervision, unjust enrichment and abuse of their fiduciary duty.

Significant financial damages

Speer is asking for damages in excess of $78 million for violations of Florida Statute Chapter 517, which governs securities transactions. She is also seeking portfolio damages of $55 to $66 million and disgorgement and excess commission damages from $37 to $44 million.

A Morgan Stanley spokeswoman said the claims are without merit, and the firm is fighting the allegations.

Roy M. Speer cofounded the Home Shopping Network in 1982. In 2003, Forbes estimated Roy Speer’s worth $775 million. He died in 2012 at age 80.

The arbitration began in January 2015 and is scheduled to conclude sometime in July.

The team of investment fraud lawyers at Starr Austen & Miller LLP fights for the protection of investors and handles cases involving securities arbitration misrepresentation, overconcentration, broker fraud, negligence and breach of trust.

Source: Investment News