Morgan Stanley Forced To Face CDO Fraud Claims In NY

Law360, New York (December 13, 2011, 2:36 PM EST) -- A federal judge in New York barred Morgan Stanley & Co. Inc. on Monday from bumping a $155 million investor fraud suit to Singapore and denied it a chance to convince an appeals court to dismiss class action claims that it rigged mortgage-backed investments to fail.

U.S. District Judge Leonard Sand granted the 18 Singapore investors an injunction preventing Morgan Stanley from pursuing an anti-suit injunction in Singapore that would bar plaintiffs from litigating outside that jurisdiction. The court also refused the defendants an interlocutory appeal...
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