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Morgan Stanley to Pay $11.7M to Craig S. Thistlethwaite Customer After Investment Losses in Tech Stocks

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Updated on: December 15, 2022

KlaymanToskes Investigates Craig S. Thistlethwaite After Covered Call Strategy Calls Away Positions in Nvidia, Tesla Motors, Apple Inc., Salesforce, and Microsoft Corp.

National investment fraud lawyers KlaymanToskes is investigating Craig S. Thistlethwaite, with The Fox Thistlethwaite Group at Morgan Stanley in Perrysburg, Ohio, after a FINRA arbitration panel ruled in favor of an investor who filed a customer complaint against Morgan Stanley, alleging an unauthorized call options strategy.

The award, granted by the FINRA panel on December 1st, 2022, includes $11.5 Million in compensatory damages and nearly $158,000 in costs to be paid out to the investor by Morgan Stanley. The investor alleged negligence and breach of fiduciary duty related to a covered call writing strategy resulting in large tech holdings being called away from the investor’s trust account, including:

  • Nvidia Corporation (NASDAQ: NVDA)
  • Tesla Motors (NASDAQ: TSLA)
  • Apple Inc. (NASDAQ: APPL)
  • Salesforce (NYSE: CRM)
  • Microsoft Corp (NASDAQ: MSFT)

During arbitration, the investor also sought sanctions against Morgan Stanley, alleging that Morgan Stanley did not retain evidence of text messages with his financial advisor, Craig Thistlethwaite. In the Award, the client disclosed that he and the advisor were close friends, and that messages were exchanged between the two on devices not issued by Morgan Stanley.

A panel of FINRA arbitrators denied the claimant’s request for sanctions against the firm, but also left open a proposal for “a court of competent jurisdiction” to determine whether to additionally award attorney’s fees. Although Craig S. Thistlethwaite (CRD# 2507050) is not directly named as a defendant in the complaint, FINRA arbitrators denied Morgan Stanley’s request for expungement of the matter from his records (Occurrence Number 2150194).

Who is Craig Sherman Thistlethwaite?

As reported by the Financial Industry Regulatory Authority, Craig Sherman Thistlethwaite (CRD# 2507050) has 27 years of experience in the securities industry and holds 34 state licenses.

Thistlethwaite is a currently registered broker and financial advisor with Morgan Stanley in Perrysburg, Ohio. Previous Registrations include Citigroup Global Markets Inc., from 2006-2009, in Toledo, Ohio.

Two public disclosures according to Brokercheck:

  1. Customer Dispute (8/17/2021) Ruled in favor of investor, Awarded $11.5M
  2. Customer Dispute (2/5/2022) Pending, Client alleges unsuitable recommendations with respect to stock options strategy

What Experience Does KlaymanToskes Have With Covered Call Strategy Cases?

KlaymanToskes has recovered millions of dollars for investors that suffered investment losses due to the recommendation of unsuitable covered call writing strategies.

For many years, KlaymanToskes has represented customers in cases against major Wall Street brokerage firms related to covered call writing strategies and options management services programs that resulted in their stock being called away.

The brokerage firms implemented the unsuitable investment strategy of selling covered call options on stocks to produce income. The strategy was improperly implemented, and it led to investors losing thousands of shares or significant amounts of money buying back the shares. The affected investors included founders and employees of public companies that received stock as compensation.

How Can I Recover My Losses?

Former and current customers of Craig Sherman Thistlethwaite or Morgan Stanley’s Perrysburg, OH branch who have experienced significant investment losses are encouraged to contact securities attorney Lawrence L. Klayman, Esq. at 1-888-997-9956 or lklayman@klaymantoskes.com.

KlaymanToskes offers legal services on a contingency fee basis, meaning that we do not collect attorney’s fees unless we are able to obtain a financial recovery for you. KlaymanToskes also has the experience and resources dedicated to your case, allowing the firm to recover over $250 million for investors in FINRA arbitrations alone.

About KlaymanToskes

KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.

Contact

KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com