A $10 million settlement between Morgan Stanley and thousands of employees over business expenses is headed back to court.

The settlement concerns a class action brought by former Morgan Stanley financial advisor Brandon Harvey in May 2018 on behalf of himself and 2,800 other advisors alleging that the wirehouse failed to properly reimburse advisors on their expense account claims.

In March 2020, former Morgan Stanley financial advisors Tracy Chen and Matthew Lucadano appealed the approved $10.2 million class settlement, on the grounds that it still shortchanged the advisors, arguing that Morgan Stanley need to pay $250 million more.

Last week, however, the Ninth Circuit Court of Appeals remanded the settlement, sending it back to the lower court.

According to the Ninth Circuit, there’s indication “that there were class members who had not suffered injury through Morgan Stanley’s [Automated Flexible Grid] program.”

The court also expressed doubt about whether “every class member who would receive damages under the settlement suffered an actual injury from Morgan Stanley’s alleged Labor Code violations.”

“We therefore vacate the district court’s approval of the settlement agreement and remand for the district court to assess Article III standing of the class members in the first instance,” the court wrote.