Morgan Stanley Can't Shake Asian Investors' CDO Suit

Law360, New York (November 3, 2011, 5:17 PM EDT) -- A New York federal judge on Monday denied Morgan Stanley & Co. Inc.'s motion to dismiss a putative class action by Singaporean and other Asian investors in nearly $155 million of credit-linked notes who say Morgan Stanley designed the notes to fail.

U.S. District Judge Leonard B. Sand allowed the case to move forward, saying the plaintiffs had sufficiently argued that Morgan Stanley designed the notes in a way that guaranteed they would fail while the bank profited.

According to the complaint, filed in October 2010,...
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