Morgan Stanley Loses Bid To Exit Rhinebridge Suit

Law360, New York (October 29, 2010, 7:45 PM EDT) -- Morgan Stanley & Co. Inc. has lost its bid to escape a proposed securities class action over the collapse of a structured investment vehicle called Rhinebridge crafted by German bank IKB Deutsche Industriebank AG.

Judge Shira A. Scheindlin of the U.S. District Court for the Southern District of New York denied Morgan Stanley's motion to dismiss two institutional investors' claims for common law fraud and for aiding and abetting common law fraud Friday.

In the ruling, Judge Scheindlin found that Morgan Stanley's dismissal request relied “almost...
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