The Law Firm of Kahn Swick & Foti, LLC Announces a Proposed Shareholder Derivative Action Settlement with Morgan Stanley

Summary Notice of Pendency and Settlement of Shareholder Derivative Action and of Settlement Hearing

NEW ORLEANS, Feb. 22, 2012 /PRNewswire-USNewswire/ -- To:  All persons and entities who owned shares of Morgan Stanley Common Stock as of January 17, 2012 and continue to own such shares ("Morgan Stanley Shareholders"):

YOU ARE HEREBY NOTIFIED, that pursuant to an Order of the United States District Court for the Southern District of New York, a hearing will be held on April 23, 2012, at 4 p.m., before the Honorable Alvin K. Hellerstein, at the United States District Court for the Southern District of New York, Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street, Courtroom 14D, New York, NY 10007, for the purpose of determining whether the proposed settlement in the action captioned In re Morgan Stanley & Co., Inc. Auction Rate Securities Derivative Litigation, Case No. 08 Civ. 7587 (AKH) (S.D.N.Y., filed Aug. 28, 2008) (the "Derivative Action") should be approved as fair, reasonable, and adequate, and whether judgment dismissing the Derivative Action should be entered.  If this proposed settlement is approved and the Derivative Action is dismissed, the action captioned Louisiana Municipal Police Employees Retirement System v. Morgan Stanley & Co., Inc., Case No. 5682-VCL (Del. Ch., filed July 30, 2010) (the "Section 220 Action") will also be dismissed. 

Plaintiffs in the Derivative Action are Morgan Stanley Shareholders who filed certain claims against the defendants derivatively on behalf of Morgan Stanley, alleging breaches of fiduciary duty and other wrongdoing in connection with Morgan Stanley's marketing and selling of Auction Rate Securities ("ARS") during 2007 and 2008.  Plaintiff in the Section 220 Action is a shareholder of Morgan Stanley who sought to obtain books and records relevant to the Morgan Stanley Board's refusal to assert the derivative claims against certain officers and directors of Morgan Stanley. 

The proposed settlement provides that, in consideration for this settlement, Morgan Stanley acknowledges that certain benefits were conferred on the Company as a result of the filing and prosecution of the Derivative Action. 

The proposed settlement further provides for the payment of attorneys' fees and expenses for Plaintiffs' Counsel in the Derivative Action and Section 220 Action not to exceed $775,000, as well as payment of an incentive award not to exceed $3,000 to be paid to Plaintiff Louisiana Municipal Police Employees Retirement System from any award of attorneys' fees and expenses.  A disallowance by the Court of any application by Plaintiffs for attorneys' fees and expenses and/or an incentive award will not operate to terminate or cancel the proposed settlement or affect its other terms, including the releases, or affect or delay the finality of the judgment approving the settlement.

IF YOU WERE AN OWNER OF MORGAN STANLEY COMMON STOCK, YOUR RIGHTS MAY BE AFFECTED BY PROCEEDINGS IN THIS ACTION. 

If you would like to review a copy of the detailed Notice of Pendency and Settlement of Shareholder Action ("Notice"), you may obtain a copy at www.MorganStanleyARSDerivativeLitigationSettlement.com, or you may request a copy of the Notice by calling (855) 263-3453 and requesting that a copy be mailed to you.  You may also obtain a copy of the Notice by contacting Lead Counsel for Plaintiffs:

Any objection to the settlement of the Action or to Plaintiffs' application for an award of attorneys' fees and/or an incentive award must be filed with the Court no later than April 9, 2012 and served by hand, e-mail, or first class mail (postage prepaid) for delivery by the same date, on the following counsel of record:

PLEASE DO NOT CONTACT THE COURT OR THE CLERK OF THE COURT REGARDING THIS NOTICE.

BY ORDER OF THE COURT
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

SOURCE Kahn Swick & Foti, LLC