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Jury orders Morgan Stanley to pay Perelman $850M in punitive damages

[JURIST] Following up on a story previously reported on JURIST's Paper Chase, a jury in West Palm Beach Florida has ordered investment giant Morgan Stanley to pay $850 million in punitive damages to billionaire investor Ronald Perelman [Forbes profile]. On Monday, the jury ordered Morgan Stanley to pay Perelman $604 million in actual damages for misrepresenting a client’s financial status to Perelman in the 1998 sale of his controlling stake in Coleman Co. to Sunbeam Corporation. A press release on the company’s website states it will appeal and that the damages award "is legally deficient and a byproduct of the unprecedented and highly prejudicial rulings imposed by the judge throughout the trial". Reuters has more.

About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

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