Archive - May 16, 2005

A Florida jury awarded these damages in connection with Morgan Stanley helping Sunbeam to falsely inflate its finances. An award for punitive damages is still expected. Morgan Stanley said it would appeal, and additional discussions with a mediator are planned.

Judge Maas had instructed the jury to assume that Morgan Stanley helped Sunbeam inflate its earnings, so Perelman only had to establish detrimental reliance. This instruction had been issued because Morgan Stanley failed to produce email.

More detail can be found here on Bloomberg’s news site.

Gillette Co. said it is “possible” that senior executives deleted e-mail that may have included discussions of the company’s proposed $57 billion acquisition by Procter & Gamble Co. that are being sought by the Massachusetts regulators.

The company disclosed in a filing in Massachusetts Superior Court Monday that Gillette employees whose e-mail may be subject to a subpoena from Secretary of State William F. Galvin “simply did not retain e-mail and, instead, had a regular practice of deleting it.”

Click here for the complete story from The Boston Globe, May 11, 2005.