Settlement Funding and Morgan Management Lawsuit

Investigations of Workplace Accidents

The Morgan Management Corporation has filed a lawsuit against a company they sued, alleging fraud. The lawsuit was in response to the company not maintaining any quality control standards, as identified by their own internal control policies. In other words, instead of checking and rechecking their own internal controls, this company simply relied on external controls to make sure that they didn’t engage in fraudulent activities. Now they are asking a judge to force the company to turn over internal control documents that allegedly show this lack of control.

If you’re familiar with the internal control policies of the larger insurance companies, such as Aetna, Humana, Delta, Assurant and Celtic, you know that these companies regularly perform yearly audits to ensure that their policies and procedures continue to be in place and are effective.

This is a standard operating procedure.

An insurance company cannot, under the law, go into business and then go back afterward and change their internal controls so that they can engage in fraudulent activities. This is an impossible endeavor for any company, regardless of its size or assets. Yet Morgan has gone ahead and filed a suit, claiming that their policies and procedures were ignored in violation of their own policies.

So, who are the plaintiffs in this lawsuit? The named parties in the lawsuit are the Bank of New York and Morgan Stanley, which are currently the two largest financial institutions in the world. This suit is being handled in the State of New York, one of the many states that are very familiar with insurance company operations and litigation.

Who could potentially be a victim in this lawsuit?

If you purchase or sell stock in a company that engages in fraudulent activities, such as Libra Morgan, LLC, you could be a possible defendant. While it is unlikely that you will actually be a defendant in this lawsuit, your stock may be among the properties that are being repossessed in the case, and you will need to get yourself caught up on all of your transactions. This means that you should consult with an attorney before you do anything. This is not a case where you can simply ignore your obligations with your broker, but it is also not a case where you should be too lenient with the brokerage.

The Morgan Management lawsuit is part of what is known as a ‘fault-based lawsuit’ in the state of New York, which essentially means that the plaintiff’s lawyers will bring a case on the basis of negligence, rather than on the basis of direct fraud. If you are being sued for something, it is important to keep an eye on your communications with your brokerage. If you are not receiving information from the brokerage that you are supposed to, make sure you find out what is going on. Most brokerage houses have a policy and a customer contract that you should read over before signing anything.

In this case, Morgan is alleging that their policies were breached. If you are being sued, it is always important to consult an attorney and have him or her review your documents. The bottom line is that you should always take every step necessary to protect your interests, because an innocent party can sometimes find themselves facing a large financial loss. Even more so in the current economy, when a large amount of money is at stake. If you find yourself in this situation, the best course of action is to seek legal advice and representation as soon as possible.

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