Jury awards additional $850 million from Morgan Stanley

The Morgan Stanley trial in Florida has now concluded, with the jury awarding Perelman an additional $850 million in punitive damages. Speaking to the jury, Perelman's lawyers argued "What you have heard [from Morgan Stanley]. What I ask you is what evidence is there, not argument, but evidence to suggest that Morgan Stanley is deserving of mercy?"

If you remember, Morgan Stanley began the trial with a severe handicap after Judge Elizabeth Maass issued a default judgment designed to penalize the firm for concealing evidence. Morgan Stanley claimed it did not have e-mail records for the period in which the sale was negotiated, then later said it had the records but it would cost hundreds of thousands of dollars and several months to locate them. This assertion turned out to be false, and Judge Maass hobbled the investment banking firm for the misstatements.

This award brings the total to $1.45 billion. I am thinking that there will be an appeal or two about this one.

I should note that Perelman only wanted $20 million to settle before the trial began.