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Morgan Stanley's Recipe for Disaster
What happened behind the scenes of the Sunbeam case that cost Morgan Stanley $1.6 billion? The record shows that the company and its in-house lawyers made some horrendous miscalculations and engaged in discovery misconduct -- although it's not clear to what extent those acts were intentional. What is clear: The case cost Morgan Stanley general counsel Donald Kempf Jr. his job and his relationship with his old firm, Kirkland & Ellis, which Kempf wound up firing as lead counsel on the Sunbeam case.Cite as: In Re Wachovia Equity Securities Litigation, 08 Civ. 6171 (RJS), NYLJ 1202489220302, at *1 (SDNY, Decided March 31, 2011)District Judge Richard J. Sull
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