Suit claims broker failed to sell stock as requested
A Utah man suffered a blow to his financial capital after his financial advisor failed to immediately sell stock as he requested, according to recently filed court documents.
Michael P. McGown filed a lawsuit July 15 in Jefferson County District Court against Morgan Stanley Smith Barney.
McGown claims he contacted Morgan Stanley agents located in Beaumont in October to ask them to sell all of the interest he had invested in Madagascar Oil.
"Shortly thereafter, Defendant's agents represented to Plaintiff that they were able to execute the necessary transactions or series of transactions on his behalf," the suit states. "In addition to several phone conversations between Plaintiff and Defendant's agents, an e-mail from one of Defendant's agents stated that the executing the transaction would be 'no problem.'"
Relying on Morgan Stanley's assurances, McGown signed various forms so that he could promptly sell stock, according to the complaint.
However, instead of selling McGown's stock immediately as promised, Morgan Stanley agents began requesting various other documents from McGown, which he promptly provided, the complaint says. Still, by Dec. 17, the stock had not been sold, McGown claims.
On Dec. 17, Madagascar Oil suspended trading for an indefinite amount of time on the London AIM Stock Exchange because of indications by Madagascar's government that it intended to expropiate the company's assets, according to the complaint.
"This rendered MOIL's stock worthless," the suit states.
In his complaint, McGown seeks economic damages within the jurisdictional limits of Jefferson County District Court, plus additional damages allowed by the Texas Business and Commerce Code, pre-judgment interest, attorney's fees, post-judgment interest, costs and other relief the court deems just.
Michael R. McGown of Benckenstein, Norvell and Nathan in Beaumont will be representing him.
Judge Donald Floyd, 172nd District Court, has been assigned to the case.
Case No. E190-523