Morgan Stanley will pay $15m (€11.73m) in penalties for failing to produce tens of thousands of emails during the Securities and Exchange Commission's IPO and research analyst investigation.

The SEC sued Morgan Stanley alleging it did not diligently search for back-up tapes containing responsive emails until 2005 despite the commission issuing subpoenas and documents requesting the tapes from as far back as December 2000. Morgan Stanley also failed to produce responsive emails because it over-wrote back-up tapes.