According to the Complaint, E*TRADE Financial Corporation and its subsidiaries provide financial services including brokerage and banking products and services to traders, investors, stock plan administrators and participants, and registered investment advisers.

This action stems from a proposed transaction announced on February 20, 2020, pursuant to which E*TRADE Financial Corporation will be acquired by Morgan Stanley.

On February 20, 2020, E*TRADE’s Board of Directors caused the Company to enter into an agreement and plan of merger with MS. Pursuant to the terms of the Merger Agreement, E*TRADE’s stockholders will receive 1.0432 shares of Parent common stock for each share of E*TRADE common stock they own.

On April 17, 2020, Defendants filed a Form S-4 Registration Statement with the United States Securities and Exchange Commission in connection with the Proposed Transaction. The Complaint alleges that the Registration Statement omits material information with respect to the Proposed Transaction, which renders the Registration Statement false and misleading.