Wednesday, May 18, 2005

Perelman Awarded $850 Million in Punitive Damages From Morgan Stanley

The Florida jury that awarded Ronald Perelman damages of $604.3 million for being defrauded by Morgan Stanley (see earlier post here) in connection with his sale of Coleman Co. to Sunbeam -- a Morgan Stanley investment banking client at the time -- has added another $850 million as punitive damages. (See AP story here)  Thus concludes phase one of the case, which Morgan Stanley has already said it plans to appeal the judge's ruling entering a default judgment on the fraud issue.  Look for the company's stock to take a hit tomorrow, amidst all the other turmoil it is facing from a revolt against current CEO Phil Purcell.  When it rains . . . (ph)

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