Penalty Amount
$1,270,000
Consumers Affected
3,370,000
New Jersey Attorney General Matthew Platkin announced a multistate settlement where Morgan Stanley will pay $1.27 million to NJ over data security incidents that compromised personal information of over 755,000 NJ residents and millions nationwide. The incidents involved improper decommissioning of devices and a software flaw, leading to unauthorized access. The settlement requires Morgan Stanley to strengthen its data security and disposal procedures.
Morgan Stanley must pay $1.27 million to New Jersey, maintain a comprehensive information security program, implement an incident response plan, regularly inventory hardware, maintain vendor inventories and risk ratings, require vendors to securely dispose of data and document it, and ensure subcontractors comply with security requirements.
In-house legal teams should review all agreements involving personal information processing, including vendor contracts, customer service agreements, employee data policies, and data processing addendums. Key clauses to assess are data security obligations, device and media disposal procedures, software vulnerability management, breach notification requirements, and data retention schedules. Based on the settlement, contracts may need amendments to enforce stricter security standards, mandate secure decommissioning of devices (e.g., data wiping or destruction), require regular security audits and vulnerability assessments, enhance breach notification timelines and scope, and ensure compliance with multistate data protection laws to mitigate risks from improper disposal and software flaws.
Entity
Morgan Stanley Smith Barney, LLC
Also known as: Morgan Stanley
Industry
Financial ServicesOfficial Press Release
https://www.njoag.gov/ag-platkin-new-jersey-to-receive-1-27-million-in-multistate-settlement-with-morgan-stanley-over-data-security-incidents-that-compromised-personal-information-of-millions-of-individuals-nationwide/
2023 1116 Morgan Stanley Assurance of Voluntary Compliance
https://www.nj.gov/oag/newsreleases23/2023-1116_Morgan-Stanley-Assurance-of-Voluntary-Compliance.pdf
New Jersey Attorney General Enforcement Page
https://www.njoag.gov/about/divisions-and-offices/division-of-consumer-affairs/
"Morgan Stanley Smith Barney, LLC (“Morgan Stanley”)"
"New Jersey is to receive approximately $1.27 million"
"the data security incidents resulted in unauthorized third parties having the ability to access devices containing customers’ personal information"
$100K
New Jersey Attorney General Jennifer Davenport and the Division of Consumer Affairs announced a Consent Order with King Distribution LLC and 17 related retail smoke shops, resolving allegations that the companies illegally sold flavored vapor products in violation of New Jersey’s consumer protection laws. The Consent Order imposes a $100,000 civil penalty, requires reimbursement of $22,279 in investigation costs, and prohibits the companies from selling or distributing flavored vapor products in New Jersey. The enforcement action is part of New Jersey’s ongoing efforts to protect youth from flavored vape products, which have been permanently banned in the state since January 2020.
The New Jersey Bureau of Securities issued a Cease and Desist Order on April 30, 2026, against Titan Macro Finance for operating an investment fraud scheme via WhatsApp and Instagram that defrauded at least one New Jersey investor of $64,000. The scheme involved unregistered broker-dealer activity, fake trading profits, and undisclosed fees to access investor funds. The action was coordinated with the California Department of Financial Protection and Innovation, which issued a similar order against the entity for violating California’s Commodity Code.
New Jersey Attorney General Jennifer Davenport and the Bureau of Securities issued a public warning to state residents about fraudulent investment schemes proliferating on Meta-owned platforms including Facebook, Instagram, and WhatsApp. The alert details common scam tactics such as pump-and-dump schemes, confidence scams, and fraudulent cryptocurrency offerings, and provides tips for residents to avoid victimization. No enforcement action against any entity was announced in this release.
New Jersey Attorney General Jennifer Davenport led a bipartisan coalition of 27 state attorneys general in submitting a comment letter to the Federal Trade Commission urging federal rulemaking to regulate hidden and deceptive rental housing fees. The AG also issued guidance clarifying New Jersey’s new $50 rental application fee cap, effective May 1, 2026, warning that deceptive fee practices may violate the New Jersey Consumer Fraud Act. No specific enforcement action against a named individual entity was announced, with enforcement of the fee cap set to begin May 1, 2026.
$2.0M
New Jersey Attorney General Jennifer Davenport announced a multistate settlement with NCL Bahamas, Ltd. (Norwegian Cruise Line) resolving allegations of deceptive sales practices and unfair cancellation, refund, and future cruise credit policies during the COVID-19 pandemic. The settlement requires NCL to pay $2 million to participating states, implement employee training and management approval processes for sales communications during disasters, and prohibits deceptive sales statements and prioritizing sales over consumer health and safety. NCL has already issued over $3 billion in refunds and future cruise credits to consumers nationwide related to the underlying allegations.
Ibelis Gonzalez, a 46-year-old Jersey City resident, was indicted on charges including second-degree theft by deception, second-degree impersonation/theft of identity, and third-degree false government documents. She is alleged to have used fake identification to obtain debit cards in six victims' names, stealing approximately $86,840 from their bank accounts between May and June 2024. The case is being prosecuted by the New Jersey Division of Criminal Justice, with potential maximum fines of $150,000 for second-degree charges and $15,000 for third-degree charges.