2nd Circ. Won't Revive Morgan Stanley Conflicts Suit

Law360, New York (January 26, 2010, 3:28 PM EST) -- A federal appeals court has decided against reviving a pair of securities class actions alleging that investment bank Morgan Stanley failed to alert mutual fund investors to practices that created potential conflicts of interest.

Morgan Stanley had no obligation to provide information that plaintiffs claimed showed a conflict of interest between the parent investment bank and its mutual funds, the U.S. Court of Appeals for the Second Circuit said in an opinion released Monday.

The Second Circuit relied heavily upon an amicus brief filed by the...
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