Legal

Morgan Stanley Wealth Management Faces $30 Million US Age Discrimination Suit

Stephen Harris 4 January 2007

Morgan Stanley Wealth Management Faces $30 Million US Age Discrimination Suit

Edward Sullivan, a 56 years old former regional director in Morgan Stanley's wealth management business, has filed a $30 million age-discrimination federal lawsuit in Manhattan against the firm and two of its human resources executives. The lawsuit alleged that human resources executives Jeffrey Brodsky and Eric Kayne conspired to terminate Mr Sullivan’s employment in autumn 2005 despite what is claims was "Mr Sullivan's distinguished, highly acclaimed, twenty-five year career" at Morgan Stanley. It is also alleged that the pair interfered with the annual evaluation process at the firm at the end of 2005 and to substitute "their own made-up poison-pen critique of Sullivan in place of the legitimate evaluations of him, in order to create a paper trial upon which he would be fired." Mr Sullivan, who was one of six executives who were no longer classified as regional directors in March 2006 in James Gorman’s management shake-up at Morgan Stanley’s wealth management operation, was reported to earn around $1 million per year. The lawsuit claims that the HR executives wanted Mr Sullivan terminated before Sullivan got any older even though there was no reason to terminate him. A spokesman for Morgan Stanley said that the lawsuit has absolutely no merit and that the firm will contest it vigorously.

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