The suit against Morgan Stanley (nyse: MWD - news - people ) was filed in the Southern District of California in San Diego in the name of William Dornan, a San Marcos, Calif. resident and former Morgan Stanley client, who made similar allegations in a December complaint filed with the National Association of Securities Dealers.
The settlement with Morgan Stanley is the latest in a string of actions by William Galvin, Secretary of the Commonwealth of Massachusetts, who has aggressively pursued securities violations.