Morgan Stanley Wealth Management has reached a legal settlement with a former risk officer who claimed he was fired for reporting a broker at the firm was improperly "churning" securities.

Clifford Jagodzinski filed suit in August citing federal laws protecting whistleblowers and asked for at least $1m in damages. In his claim, he said he determined that a star broker, Harvey Kadden, was making unnecessary trades to drive up commissions, and that he was fired in April because he urged the firm to report the violations to regulators.