Morgan Stanley Can't Duck Suit Over $2.4B Plan Loss

Law360, New York (April 29, 2013, 1:57 PM EDT) -- Morgan Stanley on Friday failed to escape a putative class action accusing it of mismanaging the investments of the retirement fund for timber company Weyerhaeuser Co., which led to a nearly $2.4 billion loss during the 2008 financial crisis, after a Washington federal judge found the plaintiffs had backed their claim with adequate evidence.

U.S. District Judge Robert S. Lasnik refused to grant the bank's motion to dismiss, ruling that plaintiffs Michael Palmason and Judith Fiest — a participant in and beneficiary of the Weyerhaeuser Retirement...
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