You would think that hammering Morgan Stanley for $1.57 billion in damages would be enough for Ronald Perelman.
No way. This Wall Street Journal ($) article reports that Mr. Perelman has requested the same Florida state district judge who eviscerated Morgan Stanley’s defense in his lawsuit to hold the investment banking firm in criminal contempt of court for allegedly lying to the court in connection with testimony over when company executives found out that certain electronic tapes at issue in the trial might have contained potentially relevant email.
Under normal circumstances, Morgan Stanley should not worry too much about Mr. Perelman’s motion. Unless the contemptuous behavior takes place in the judge’s presence, all the judge should be able to do is refer the matter to the local district attorney for prosecution if she concludes that Mr. Perelman has made a prima facie case of criminal contempt. Moreover, the judge should recuse herself from overseeing the criminal case because she would likely be a witness in that case.
Having said all that, the way this case has gone for Morgan Stanley, the firm would be well-advised to have bail money immediately available for use after the hearing.