Former Morgan Stanley Broker Sean Righter Faces Multiple Customer Complaints
The White Law Group is investigating potential lawsuits involving former Morgan Stanley financial advisor Sean Righter.
Sean Righter, a financial advisor formerly registered with Morgan Stanley in Irvine, California, is currently facing multiple pending customer lawsuits, according to his public FINRA BrokerCheck report (CRD #5419832). The complaints involve allegations of unsuitable investment recommendations and portfolio mismanagement, resulting in significant losses.
Unsuitable Investments
The pending complaints, filed between 2022 and 2023, request damages ranging from $750,000 to $1.5 million. These arbitration claims allege that Righter failed to invest client assets in a manner consistent with their stated objectives and risk tolerances. Although the cases remain unresolved, they raise concerns about whether clients received appropriate financial guidance and whether their best interests were prioritized.
Righter was affiliated with Morgan Stanley from 2009 until February of this year and is licensed to operate in multiple states. While all advisors can face disputes during their careers, the severity and similarity of allegations can be a red flag for clients evaluating whether their accounts have been managed properly.
What Investors Can Do
Investors have a right to expect transparent, suitable advice from their financial advisors. When portfolios suffer significant losses that appear inconsistent with a client’s stated investment profile, legal remedies may be available through FINRA arbitration.
Failure to Supervise
All broker-dealers have a responsibility to adequately supervise their advisors. They must ensure they have procedures and systems in place to detect broker misconduct. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.
Class Action Lawsuit vs. Individual FINRA Arbitration Lawsuit
You may wonder whether a large class action lawsuit is a better litigation option than an individual FINRA arbitration case. The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option. Class action lawsuits as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.
Frequently Asked Questions: Sean Righter & Morgan Stanley
1. What are the allegations against Sean Righter?
According to public records from FINRA, multiple customers have filed complaints alleging that Sean Righter made unsuitable investment recommendations that were not aligned with their financial goals or risk tolerance. The pending claims seek damages between $750,000 and $1.5 million.
2. Can I join a class action lawsuit against Morgan Stanley or Sean Righter?
No. Most brokerage firms, including Morgan Stanley, require clients to resolve disputes through FINRA arbitration, not class actions. Each case must be filed individually, but many investors have successfully recovered losses through this process.
3. How do I know if I have a case?
If you’re a retiree or conservative investor who suffered unexpected losses — especially in complex or aggressive investments — you may have grounds for a claim. A securities attorney can review your account statements and investment history to determine whether your portfolio was managed appropriately.
Sean Righter: FINRA Lawsuits
If you have suffered investment losses with Sean Righter and Morgan Stanley the securities attorneys at the White Law Group may be able to help you by filing a FINRA lawsuit. Please call our offices at (888) 637-5510 for a free consultation. We take cases in all 50 states including Virginia.
National Securities Attorneys
The White Law Group, LLC is a national law firm in securities fraud, securities arbitration, investor protection, and securities regulation and compliance. With offices in Chicago, Illinois and Seattle, Washington, the firm is dedicated to assisting investors across all 50 states with claims against their brokerage firms. Since its founding in 2010, The White Law Group has handled over 800 FINRA arbitration cases.
Last modified: May 8, 2025
