Morgan Stanley Seeks Dismissal Of Doc Demand Suit

Law360, New York (January 12, 2011, 8:30 PM EST) -- Morgan Stanley urged a Delaware court Wednesday to dismiss a shareholder suit seeking the inspection of the broker-dealer’s books and records in pursuit of evidence that its board helped manipulate the market for auction rate securities.

The shareholder suit, brought under Section 220 of the Delaware General Corporation Law, cannot be lodged after the plaintiff has already commenced derivative litigation on the same issues, Morgan Stanley said at a hearing in the Delaware Court of Chancery.

The plaintiff, the Louisiana Municipal Police Employees Retirement System, was...
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