Morgan Stanley provided investment banking services to both Amazon.com and eBay during certain periods in question. The shareholders allege that Meeker was principally employed to attract investment banking customers to Morgan Stanley, but that this was not publicly disclosed. They argue that owing to her role in attracting and retaining clients, Meeker failed to base her advice for the companies on objective analyses and that the amount of compensation she received was directly tied to the volume of business she generated for Morgan Stanley.
In addition to these allegations, the shareholders claim that Meeker’s improper conduct allowed her to purportedly earn $15 million in 1999 alone. They also maintain that because Morgan Stanley failed to fully disclose its activities, they purchased stock in the companies at inflated prices.
Morgan Stanley has made no official response to the allegations.