Morgan Stanley Moves To Oust $66.3M ARS Claims

Law360, New York (October 12, 2009, 8:06 PM EDT) -- Morgan Stanley & Co. Inc. has asked a federal judge to toss securities fraud claims brought against it by AshThree LLC and Ashland Inc., stating that the plaintiffs knew the risks associated with the acquisition of the auction rate securities at issue and that their suit failed to prove the willfulness necessary to make a fraud claim against Morgan Stanley.

The financial services firm, which had advised Ashland to pursue a $66.3 million investment in student loan ARS prior to the collapse of that market in...
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