Derek Johnson of Morgan Stanley Subject of Complaint Involving Losses in Bed Bath and Beyond and Energy Stocks

Israels & Neuman, PLC

You may be able to file a claim if you lost money in Bed Bath and Beyond investments with Morgan Stanley financial advisor, Derek Michael Johnson in Brea, California. The securities fraud law firm of Israels & Neuman is reviewing allegations made against Johnson, who has been a representative with Morgan Stanley since June 2020. 

FINRA posts reportable events on a website called BrokerCheck, which discloses events like customer complaints, terminations, and regulatory investigations against licensed financial advisors.  According to BrokerCheck, Johnson was the subject of a customer complaint made in June 2025, alleging losses of $750,000.  The complaint alleged that he recommended purchases of Bed Bath and Beyond shares and energy stocks.

Background on Derek Johnson

Derek Johnson held his securities license through Morgan Stanley since June 2020.  He was assigned to a Brea, California office.  Johnson had been in the industry since 2005.  He was also the subject of a customer complaint made in 2021 that settled for $750,000.

Responsibility for Johnson’s Conduct

Morgan Stanley is a broker-dealer and is required to reasonably supervise the activities of its financial advisors, under FINRA Rule 3110.  Morgan Stanley also has to ensure that investment recommendations are suitable for its customers under Rule 2111.  Violations of these rules could lead to liability for a broker-dealer.

We Represent Investors in California

Our securities arbitration law firm represents investors throughout the country, including in California and the Los Angeles area.  If you were a client of Derek Johnson and believe he acted improperly, you may be entitled to recover losses through FINRA arbitration.

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