Morgan Stanley Zoom Autocallable Notes
The White Law Group is investigating potential securities lawsuits involving Morgan Stanley Zoom Autocallable Notes.
Investors who purchased a structured product from Morgan Stanley linked to Zoom Video Communications Inc. may face significant downside risk depending on stock performance.
The structured note in question—Morgan Stanley’s Contingent Income Auto-Callable Securities based on the Class A Common Stock of Zoom Video Communications, Inc. (CUSIP: 61771D514)—was issued in October 2020 with a face value of $15,023,870. The note’s performance is tied to the share price of Zoom, and poor performance could substantially reduce or eliminate the final payout.
Details of the Investment – Morgan Stanley Zoom Autocallable
- Issue Date: October 8, 2020
- Linked Security: Zoom Video Communications, Inc. Class A Common Stock (NASDAQ: ZM)
- Product Type: Contingent Income Auto-Callable Structured Note
- Face Value: $15,023,870
- Final Payout: Depends on Zoom stock price on October 2, 2023
- If price ? $161.06 (65% of initial $247.78): $10 + final coupon ($0.475) per note
- If price < $161.06: $10 × (final share price ÷ $247.78) — leading to potential full loss
- Total Loss Potential: Up to 100% of principal. If Zoom’s stock closes below the downside threshold at maturity, investors could receive significantly less than their original investment or nothing at all.
Why Could the Investment Lose Value?
Autocallable notes can offer high yield potential but come with significant risks. In this case:
https://www.sec.gov/Archives/edgar/data/895421/000138713120008855/ms4957-424b2_100220.htm
- Note automatically calls if Zoom stock closes ? $247.78 on an observation date
- If not called and price < $161.06 on final date, investors face principal loss
- No interest is paid unless stock closes above threshold on review dates
- Estimated initial value: $9.415 per $10.00 note
Understanding the Risks of Autocallable Notes
Despite contingent coupon potential, investors face:
- Market risk from Zoom (ZM) share price
- Credit risk of Morgan Stanley Finance LLC
- No guaranteed income or capital return
- Limited upside and full downside exposure
- No FDIC insurance
Did Your Financial Advisor Recommend This Investment?
Brokers must ensure recommendations are suitable. If this Zoom-linked note was sold without fully disclosing the risks, you may be entitled to pursue a claim through FINRA arbitration.
FINRA Arbitration vs. Class Action
- FINRA arbitration best suits large individual losses
- Class actions typically address smaller, uniform claims
Free Consultation
The White Law Group is investigating potential claims involving Morgan Stanley Zoom Autocallable Notes. To discuss your losses, call (888) 637-5510 for a free consultation.
Visit www.whitesecuritieslaw.com for more information on your rights as an investor.
Last modified: June 4, 2025
