Morgan Stanley to pay $2.3M in price-gouging case

Florida has settled with Morgan Stanley Capital Group Inc. and a subsidiary, Transmontaigne Product Services Inc., for $2.3 million, resolving a price-gouging investigation into price increases for fuel last September in the aftermath of Hurricane Ike.

Florida has settled with Morgan Stanley Capital Group Inc. and a subsidiary, Transmontaigne Product Services Inc., for $2.3 million, resolving a price-gouging investigation into price increases for fuel last September in the aftermath of Hurricane Ike.
The settlement is the largest under Florida’s price-gouging laws, and may represent the largest-ever paid for a price gouging case nationally, Florida’s Attorney General Bill McCollum, said in a statement issued yesterday.
Morgan Stanley Capital and Transmontaigne Product Services agreed to the settlement without admitting any wrongdoing.
At issue was a disagreement between Florida officials and the two firms over how to characterize an index used to identify the price of fuel and its movement, according to the settlement agreement.
Under Florida’s price-gouging laws, the state excludes price increases due to additional costs in the sale of the commodity as well as sudden national or international market trends.
Morgan Stanley Capital, the commodities group of New York-based Morgan Stanley and Transmontaigne Product Services of Denver maintained that, during the declared state of emergency, the spot sales prices traced the Gulf Coast Platts Index, which they contended reflected national or international trends.
Florida officials disagreed, maintaining that the index showed regional price trends. One million dollars of the settlement went to attorney’s fees and investigative costs, according to the agreement.
Jennifer Sala, a spokeswoman with Morgan Stanley, said the firm was “pleased to have resolved this issue with the state of Florida.”