Marco Consulting filed a suit against Mr. Jones and MSSB on April 25, roughly 10 days after he resigned to join Graystone Consulting, alleging a “direct and willful breach of an employment agreement” barring Mr. Jones from contacting, soliciting business from or offering his services to his former clients at Marco for two years after his departure from the firm.
In a subsequent filing, Mr. Jones denied soliciting his former clients while maintaining the right to respond to their inquiries.
Late Monday, both sides were claiming victory.
“They were wrong, we proved they were wrong; they gave us a big check and we moved on,” said Mr. Marco, who argued that — following a strong show of support from a number of labor leaders — Morgan Stanley reached out to Marco Consulting looking to settle.
For its part, Morgan Stanley, in an e-mailed statement, said: “We've always considered Marco's claims to be meritless. We think the fact that Marco chose to so quickly settle its case after we filed our response rather than test the merits of its case in court, speaks for itself.”
“Now that this distraction is behind us, Mr. Jones looks forward to continuing to help his clients meet their financial goals, fully backed by all of the resources of Graystone Consulting and Morgan Stanley Smith Barney,” the Morgan Stanley e-mail said.
Christine Pollak, spokeswoman for Morgan Stanley, declined further comment. Mr. Jones couldn't immediately be reached for comment.