Morgan Stanley is accused of leading an overly aggressive block trade in Palantir stock by Disruptive Technology Solutions

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A wide-ranging federal investigation is looking into whether Wall Street banks told favoured clients about pending sales, known as block trades, that they were hired to carry out secretly. Morgan Stanley MS, -1.98% is at the centre of this investigation. The investor, Disruptive Technology Solutions LLC, and affiliated funds, filed a demand for arbitration against the bank with the Financial Industry Regulatory Authority on Monday, a copy of which was seen by The Wall Street Journal.

When the fund sold more than $300 million in Palantir PLTR, -4.96% of its shares in early February 2021, Disruptive claims Morgan Stanley and an executive there leaked information, causing “tens of millions of dollars in damages.” Disruptive is pursuing both compensatory and punitive damages in its lawsuit against the plaintiffs.

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Customers may have been tipped off to block trades in which insiders sell large amounts of stock through a broker like Morgan Stanley, according to the SEC and the Justice Department’s investigation of the matter. Knowing about a block trade ahead of time can help an investor profit from a short sale or avoid a loss by selling off the stock they already own.

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Zaid Quraishi
My name is Zaid Quraishi. I pride myself on being a meticulous and organized individual who has done his Bachelors in Medical Technology and currently pursuing my Master's in the same course from Sher-e-Kashmir Institute of Medical Sciences. I belong to the beautiful valley of Kashmir, and my hometown is Srinagar. I am the elder sibling of my younger brother. As far as my strengths are concerned, I am effectively communicative, optimistic, reliable, a team player, and time-efficient. My weaknesses are that I am an honest person and I tend to be blunt, and sometimes, I like to work alone. I am passionate about content writing, online gaming, and learning new things, especially languages (currently German). I have written two papers for my University degree, which helped me immensely in learning how to write effectively. I am confident in my writing skills, and I can effectively pour my thoughts out in writing and express myself so that the reader relates to it and is intrigued by the content. I love to play with my pet cat, and she is a darling to me. The thing that I dislike the most is being distracted when you are in the zone. Currently, I am a content writer in a dynamic work environment at Shouzy, ready to improve readers' satisfaction and increase retention levels.

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