A class action lawsuit has been filed against the investment firm alleging brokers gave investors bad advice to retire early and promised financial security that never materialized. The lawsuit was filed in New York state court in Monroe County on behalf of former employees of Eastman Kodak Co. and Xerox who were told by their Morgan Stanley broker, Michael James Kazacos, that they had enough money to retire and live comfortably. Employees cashed out of their employer-sponsored retirement plans and put their money with Morgan Stanley. They were told they could withdraw 10% of their savings each year for the rest of their lives without depleting their principal.
Retirees were persuaded to retire early and advised they could live off the returns their money would generate if invested with Morgan Stanley. With early retirement and the subsequent stock market tumble starting in 2000, those guarantees were untrue and retirees suffered devastating financial losses.
