"It is market abuse which is wrong and this can occur when holding either long or short positions, " said David Bennett, CEO of Apcims, the Association of Private Client Investment Managers and Stockbrokers.
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.