Ex-Morgan Stanley Advisors Sue DOL for ‘Illegal Overreach’ in $Ms Deferred Comp Fight: ERISA Opinion ‘Interferes’ with 100s of Claims
**Former Morgan Stanley financial advisors just *sued the U.S. Department of Labor*—blasting a *Sept. 9 advisory opinion* as “illegal interference” that hands the Wall Street giant a get-out-of-jail-free card in hundreds of arbitration battles over millions in forfeited deferred pay.
Plaintiffs Steve Sheresky, Jeffrey Samsen, and Nicholas Sutro—veteran brokers from Westchester, NY—torched the DOL in Manhattan federal court Tuesday (Case: 25-08935). “Arbitrary, capricious… thumb on the scale for Morgan Stanley,” their 26-page complaint roars, demanding the opinion be vacated under APA.
Backstory bombshell: Advisors defer 1.5-15.5% of pay for “loyalty”—forfeited if they jump ship pre-vesting. Ex-reps cry ERISA violation (anti-forfeiture rules); courts twice agreed (Shafer v. Morgan Stanley). MS lobbied DOL Aug. 2025—boom: Opinion 2025-03A calls it a “bonus program,” not pension.
MS wields it as a “sword”: FINRA briefs claim DOL’s official stance—seeks 6-figure fee awards vs. advisors. 12 plaintiffs already sued MS; hundreds more arbitrations hang.
Attorney Doug Needham (Motley Rice): “Stops agency overreach… APA designed for this.” Targets: Sec. Lori Chavez-DeRemer, Daniel Aronowitz, Janet Dhillon.
X ignites—@WealthMgmt (1.2K views): “DOL picks Wall St over advisors!” @AdvisorHub: “Brokers fight back—ERISA war escalates.”
U.S. advisors revolt: $100M+ at stake amid recruiting wars (MS lost $2T AUM bets). FINRA wins? MS 5-0 lately—but class action looms. Wall Street pay grids quake; Merrill watches.
DOL/MS silent. SDNY showdown could torch DOL cred—advisors’ payday or poof?
Financial advisors sue DOL, Morgan Stanley deferred comp, ERISA advisory opinion—loyalty bonuses or theft?
By Sam Michael
Follow us for daily Wall Street lawsuits and push notifications on Morgan Stanley ERISA updates.