NEW YORK, Nov. 18, 2003 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Rudman, LLP announced today that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all purchasers, redeemers and holders of shares of the Morgan Stanley Family of Funds (the "Morgan Stanley Funds"), which are managed by Morgan Stanley (NYSE: MSD - News) from October 1, 1999 through December 31, 2002, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.cauleygeller.com/show_case.asp?ccode=185&pcode=10&pp=4.
The following Morgan Stanley Funds are subject to this class action:
Morgan Stanley 21st Century Trend Fund (Nasdaq: TCTAX TCTBX TCTCX TCTDX) Morgan Stanley Aggressive Equity Fund (Nasdaq: AEQAX AEQBX AEQCX AEQDX) Morgan Stanley All Star Growth Fund (Nasdaq: ALLAX ALLBX ALLCX ALLDX) Morgan Stanley American Opportunities Fund (Nasdaq: AMOAX AMOBX AMOCX AMODX) Morgan Stanley Biotechnology Fund (Nasdaq: BTKAX BTKBX BTKCX BTKDX) Morgan Stanley Capital Opportunities Trust (Nasdaq: CPOAX CPOBX CPOCX CPODX) Morgan Stanley Developing Growth Securities (Nasdaq: DGRAX DGRBX DGRCX DGRDX) Morgan Stanley Financial Services Trust (Nasdaq: FSVAX FSVBX FSVCX FSVDX) Morgan Stanley Growth Fund (Nasdaq: GRTAX GRTBX GRTCX GRTDX) Morgan Stanley Health Sciences Trust (Nasdaq: HCRAX HCRBX HCRCX HCRDX) Morgan Stanley Information Fund (Nasdaq: IFOAX IFOBX IFOCX IFODX) Morgan Stanley KLD Social Index Fund (Nasdaq: SIXAX SIXBX SIXCX SIXDX) Morgan Stanley Market Leader Trust (Nasdaq: MLDAX MLDBX MLDCX MLDDX) Morgan Stanley Mid-Cap Value Fund (Nasdaq: MDFAX MDFBX MDFCX MDFDX) Morgan Stanley Nasdaq-100 Index Fund (Nasdaq: NSQAX NSQBX NSQCX NSQDX) Morgan Stanley Natural Resource Development Securities (Nasdaq: NREAX NREBX NRECX NREDX) Morgan Stanley New Discoveries Fund (Nasdaq: NDFAX NDFBX NDFCX NDFDX) Morgan Stanley Next Generation Trust (Nasdaq: NGTAX NGTBX NGTCX NGTDX) Morgan Stanley Small-Mid Special Value Fund (Nasdaq: JBJAX JBJBX JBJCX JBJDX) Morgan Stanley Special Growth Fund (Nasdaq: SMPAX SMPBX SMPCX SMPDX) Morgan Stanley Special Value Fund (Nasdaq: SVFAX SVFBX SVFCX SVFDX) Morgan Stanley Tax-Managed Growth Fund (Nasdaq: TGXAX TGXBX TGXCX TGXDX) Morgan Stanley Technology Fund (Nasdaq: TEKAX TEKBX TEKCX TEKDX) Morgan Stanley European Growth Fund (Nasdaq: EUGAX EUGBX EUGCX EUGDX) Morgan Stanley Fund of FundsInternational Portfolio (Nasdaq: IOFBX IOFCX IOFDX) Morgan Stanley Global Advantage Fund (Nasdaq: GADAX GADBX GADCX GADDX) Morgan Stanley Global Dividend Growth Securities (Nasdaq: GLBAX GLBBX GLBCX GLBDX) Morgan Stanley Global Utilities Fund (Nasdaq: GUTAX GUTBX GUTCX GUTDX) Morgan Stanley International Fund (Nasdaq: INLAX INLBX INLCX INLDX) Morgan Stanley International Smallcap Fund (Nasdaq: ISMAX ISMBX ISMCX ISMDX) Morgan Stanley International Value Equity Fund (Nasdaq: IVQAX IVQBX IVQCX IVQDX) Morgan Stanley Japan Fund (Nasdaq: JPNAX JPNBX JPNCX JPNDX) Morgan Stanley Latin American Growth Fund (Nasdaq: LATAX LATBX LATCX LATDX) Morgan Stanley Pacific Growth Fund (Nasdaq: TGRAX TGRBX TGRCX TGRDX) Morgan Stanley Allocator Fund (Nasdaq: ALRAX ALRBX ALRCX ALRDX) Morgan Stanley Balanced Growth Fund (Nasdaq: BGRAX BGRBX BGRCX BGRDX) Morgan Stanley Balanced Income Fund (Nasdaq: BINAX BINBX BINCX BINDX) Morgan Stanley Convertible Securities Trust (Nasdaq: CNSAX CNSBX CNSCX CNSDX) Morgan Stanley Dividend Growth Securities (Nasdaq: DIVAX DIVBX DIVCX DIVDX) Morgan Stanley Equity Fund (Nasdaq: EQFAX EQFBX EQFCX EQFDX) Morgan Stanley Fund of FundsDomestic Portfolio (Nasdaq: DOFAX DOFBX DOFCX DOFDX) Morgan Stanley Fundamental Value Fund (Nasdaq: FVFAX FVFBX FVFCX FVFDX) Morgan Stanley Income Builder Fund (Nasdaq: INBAX INBBX INBCX INBDX) Morgan Stanley Real Estate Fund (Nasdaq: REFAX REFBX REFCX REFDX) Morgan Stanley S&P 500 Index Fund (Nasdaq: SPIAX SPIBX SPICX SPIDX) Morgan Stanley Strategist Fund (Nasdaq: SRTAX SRTBX SRTCX SRTDX) Morgan Stanley Total Market Index Fund (Nasdaq: TMIAX TMIBX TMICX TMIDX) Morgan Stanley Total Return Trust (Nasdaq: TRFAX TRFBX TRFCX TRFDX) Morgan Stanley Utilities Fund (Nasdaq: UTLAX UTLBX UTLCX UTLDX) Morgan Stanley Value Fund (Nasdaq: VLUAX VLUBX VLUCX VLUDX) Morgan Stanley Value-Added Market Series/Equity Portfolio (Nasdaq: VADAX VADBX VADCX VADDX) Morgan Stanley Active Assets California Tax-Free Trust (Nasdaq:AACXX) Morgan Stanley Active Assets Government Securities Trust (Nasdaq: AAGXX) Morgan Stanley Active Assets Institutional Money Trust (Nasdaq:AVIXX) Morgan Stanley Active Assets Money Trust (Nasdaq: AAMXX) Morgan Stanley Active Assets Tax-Free Trust (Nasdaq: AATXX) Morgan Stanley Flexible Income Trust (Nasdaq: DINAX DINBX DINCX DINDX) Morgan Stanley Federal Securities Trust (Nasdaq: FDLAX FDLBX FDLCX FDLDX) Morgan Stanley High Yield Securities (Nasdaq: HYLAX HYLBX HYLCX HYLDX) Morgan Stanley Quality Income Trust (Nasdaq: IISAX IISBX IISCX IISDX) Morgan Stanley Limited Duration Fund (Nasdaq: MSLDX) Morgan Stanley Limited Duration U.S. Treasury Trust (Nasdaq:LDTRX) Morgan Stanley Liquid Asset Fund (Nasdaq: DWLXX) Morgan Stanley Prime Income Trust (Nasdaq: XPITX) Morgan Stanley U.S. Government Money Market Trust (Nasdaq: DWGXX) Morgan Stanley U.S. Government Securities Trust (Nasdaq: USGAX USGBX USGCX USGDX) Morgan Stanley California Tax-Free Daily Income Trust (Nasdaq: DSCXX) Morgan Stanley California Tax-Free Income Fund (Nasdaq: CLFAX CLFBX CLFCX CLFDX) Morgan Stanley Hawaii Municipal Trust (Nasdaq: DWHIX) Morgan Stanley Limited Term Municipal Trust (Nasdaq: DWLTX) Morgan Stanley Multi-State Municipal Series Trust Arizona Series (Nasdaq: DWAZX) Morgan Stanley Multi-State Municipal Series Trust Florida Series (Nasdaq: DWFLX) Morgan Stanley Multi-State Municipal Series Trust New Jersey Series (Nasdaq: DWNJX) Morgan Stanley Multi-State Municipal Series Trust Pennsylvania Series (Nasdaq: DWPAX) Morgan Stanley New York Municipal Money Market Trust (Nasdaq: DWNXX) Morgan Stanley New York Tax-Free Income Fund (Nasdaq: NYFAX NYFBX NYFCX NYFDX) Morgan Stanley Tax-Exempt Securities Trust (Nasdaq: TAXAX TAXBX TAXCX TAXDX) Morgan Stanley Tax-Free Daily Income Trust (Nasdaq: DSTXX)
The complaint charges Morgan Stanley, Morgan Stanley DW, Inc., Morgan Stanley Investment Advisors, Inc., Morgan Stanley Investments LP, and the Morgan Stanley Funds with violations of the Securities Act of 1933 (the "Securities Act"), the Securities Exchange Act of 1934 (the "Exchange Act"), and for common law breach of fiduciary duties. This action concerns Morgan Stanley's prohibited sales contests for its brokers and managers to promote the sale of Morgan Stanley mutual funds and a selected few variable annuities. More specifically, during the Class Period, Morgan Stanley cultivated a clandestine culture to aggressively sell the Morgan Stanley Funds above all other funds. During the Class Period, defendants engaged in illegal activities involving high-pressured sales tactics to sell Morgan Stanley Funds over non-proprietary external funds. At the regional and branch levels, these tactics included sales contests, various types of hidden compensation in the form of travel and expense ("T&E") reimbursements, business development dollars, asset retention dollars and most importantly, a higher compensation pay-out for selling Morgan Stanley Funds. The branch managers as well as regional executives received bonus compensation based in part on the successful sale of the Morgan Stanley Funds. During the Class Period, Morgan Stanley failed to disclose any of these financial incentives to Plaintiff and other class members. In fact, in an effort to conceal the potential conflicts of interest that these incentives formed, Morgan Stanley intentionally sought to prevent any written communication concerning these sales practices.
If you bought, redeemed or owned shares of the Morgan Stanley Funds between October 1, 1999 through December 31, 2002, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than December 19, 2003. If you are a member of this class, you can join this class action online at http://www.cauleygeller.com/template8.asp?pcode=6&pp=1. Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Cauley Geller is a national law firm that represents investors and consumers in class action and corporate governance litigation. It is one of the country's premiere firms in the area of securities fraud, with in-house finance and forensic accounting specialists and extensive trial experience. Since its founding, Cauley Geller has recovered in excess of two billion dollars on behalf of aggrieved shareholders. The firm maintains offices in Boca Raton, Little Rock and New York.
If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.cauleygeller.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.