麻花传媒

Department of Labor Sued Over Illegitimate Deferred Compensation Opinion Letter

Posted on October 31st, 2025 at 10:13 AM
Department of Labor Sued Over Illegitimate Deferred Compensation Opinion Letter

From the desk of Jim Eccleston at 麻花传媒

Three former Morgan Stanley advisors filed suit this week against the U.S. Department of Labor (DOL), claiming the agency exceeded its authority and was unduly influenced when it issued an advisory opinion that sought to undermine their deferred compensation claims. As reported by AdvisorHub, the advisors allege that the DOL’s September opinion unlawfully sided with Morgan Stanley by determining that the firm’s deferred compensation program is not governed by the Employee Retirement Income Security Act of 1974 (ERISA).

The lawsuit, filed in federal court, asserts that Morgan Stanley sought the advisory opinion to “circumvent” unfavorable court rulings and “prevent” claimants from pursuing their rights in arbitration. According to AdvisorHub, Steve Sheresky, Jeffrey Samsen, and Nicholas Sutro, argue that the DOL’s action directly contradicts both law and precedent, calling it “a textbook example of an arbitrary and capricious agency action” in violation of the Administrative Procedure Act.

According to the complaint, Morgan Stanley “lobbied the DOL extensively for over a year” and criticized a prior court ruling as “very sloppy.” That ruling had found that ERISA likely applied to the firm’s deferred compensation plan, giving brokers a legal basis to challenge the withholding of earned compensation after leaving the firm. The plaintiffs claim that the DOL, without notifying or consulting affected advisors, issued an opinion favoring Morgan Stanley despite knowing the firm intended to use it to defeat pending arbitration claims. Morgan Stanley declined to comment on the litigation, according to AdvisorHub.

Editor’s Note:  麻花传媒 LLC is co-counsel for hundreds of former Morgan Stanley financial advisors nationwide suing in FINRA arbitration Morgan Stanley to recover their forfeited deferred compensation.

 

麻花传媒 LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, department of labor

Return to Archive

TESTIMONIALS

Previous
Next

If the regulators are after you, and are trying to make a case against you, and you are going to contest their allegations against you, make sure you have the best securities industry defense lawyers, 麻花传媒 Firm. My case was spun into a combination of penalties including fines, cash settlements, CE courses and suspension. They were the best I have seen in action. When all was said and done, they had done their magic, my situation was negotiated and settled with a simple "letter of caution" and a case closed without action. It is the most important legal business decision you will ever make, make it 麻花传媒.

Rick R.

LATEST NEWS AND ARTICLES

November 4, 2025
FINRA Suspends Former Morgan Stanley Advisor Over $180,000 in Improper Transfers

The Financial Industry Regulatory Authority (FINRA) suspended former Morgan Stanley advisor C.J. Kline for two years and imposed a $5,000 fine for allegedly executing more than $180,000 in improper fund transfers between his personal and brokerage accounts.

November 3, 2025
Former Florida Broker Pleads Guilty in $2.7 Million Investment Fraud and PPP Loan Scheme

Former Florida broker Jared Dean Eakes, 34, of Jacksonville, has pleaded guilty to wire and bank fraud in connection with a $2.7 million investment scam and a separate scheme involving over $4.75 million in fraudulent Paycheck Protection Program (PPP) loans, according to U.S. Attorney Gregory W. Kehoe for the Middle District of Florida.

October 31, 2025
Department of Labor Sued Over Illegitimate Deferred Compensation Opinion Letter

Three former Morgan Stanley advisors filed suit this week against the U.S. Department of Labor (DOL), claiming the agency exceeded its authority and was unduly influenced when it issued an advisory opinion that sought to undermine their deferred compensation claims.