Morgan Stanley Lawsuit: Greenbacker FINRA Claim
The White Law Group announces it has filed a FINRA arbitration claim against Morgan Stanley on behalf of a California investor. According to the Statement of Claim, Morgan Stanley allegedly recommended an unsuitable investment in Greenbacker Renewable Energy Company LLC. The claimant is seeking damages of $500,000 to $1,000,000. Investors who bought Greenbacker through Morgan Stanley and lost money can talk to our FINRA arbitration attorneys about their options.
What the Claim Alleges Against Morgan Stanley
The claim alleges a Morgan Stanley broker recommended Greenbacker without properly weighing the investor’s goals, risk tolerance, or need to reach their money. It also alleges Morgan Stanley, the FINRA member firm responsible for supervising the broker, failed to stop the recommendation.
About Greenbacker Renewable Energy Company LLC
Greenbacker Renewable Energy Company LLC is a non-traded company that invests in solar, wind, and other renewable energy projects. Its shares do not trade on an exchange, so investors cannot simply sell them on the open market. Greenbacker suspended its share repurchase program in September 2023 and suspended monthly distributions in 2024, which left many investors with limited ways to get their money out or earn income from the investment.
Managing Partner Statement
“Non-traded investments like Greenbacker can be hard to sell, and investors need to know that before their money goes in,” said Dax White, managing partner of The White Law Group. “We believe there may be other investors who were sold Greenbacker and don’t realize they have recourse.”
Can Morgan Stanley Be Held Responsible?
Brokerage firms must supervise the recommendations their registered representatives make. If a firm fails to catch an unsuitable sale, it may be liable for the losses that follow, even if a broker made the recommendation.
Recovering Losses From Greenbacker Renewable Energy Company LLC
Investors who were sold an unsuitable investment in Greenbacker may be able to recover losses through FINRA arbitration. The White Law Group is looking into potential claims for other investors who bought Greenbacker through a broker.
Contact The White Law Group
The White Law Group is a team of national securities fraud attorneys with offices in Chicago and Seattle. If you invested in Greenbacker Renewable Energy Company LLC through Morgan Stanley and have losses, call (888) 637-5510 for a free consultation, or contact us online.
Frequently Asked Questions
1. How do I file a claim to recover money I invested in Greenbacker through Morgan Stanley?
Most brokerage account agreements typically include a pre-dispute arbitration clause, so claims like this usually go through FINRA arbitration instead of court. Many investors don’t know that clause exists, and arbitration can still lead to a monetary recovery.
2. Why can a non-traded investment like Greenbacker be unsuitable?
Non-traded investments are illiquid, so an investor may be stuck holding shares when they need cash. If a broker recommends one without matching it to the investor’s needs, the recommendation may be unsuitable.
3. Can Morgan Stanley be held responsible for my losses even if it didn’t approve the investment?
Yes, a firm may be liable for failing to supervise its brokers. Firms have a duty to review what their representatives recommend, and a lapse in that review can create liability.
