Morgan Stanley will reportedly drop its remaining claims for breach of contract and fraud against convicted portfolio manager Joseph “Chip” Skowron.
Morgan Stanley attorney Kevin Marino explained to Bloomberg Businessweek that continuing “to pursue additional claims was pointless.” Skowron has already reimbursed Morgan Stanley $6.4 million for compensation he received while working as a fund manager at hedge fund firm FrontPoint Partners—which was once owned by the New York-based bank.
Skowron was sentenced in 2011 after he pleaded guilty to charges that he sold shares in biopharmaceutical company Human Genome Sciences in order to avoid $30 million in losses for FrontPoint Partners, using insider information from HGS adviser Yves Benhamou to carry out the sale.
Morgan Stanley, in turn, sued Skowron after he pleaded guilty to conspiring to commit securities fraud and obstruct justice.
Skowron is currently serving a five-year prison terms in a federal prison in Pennsylvania.