Valvoline Maker Slaps Morgan Stanley With ARS Suit

Law360, New York (June 12, 2009, 12:00 AM EDT) -- Ashland Inc., the maker of Valvoline motor oil, has sued Morgan Stanley & Co. Inc., claiming the investment firm left the chemical company with $66.3 million in illiquid auction rate securities after misrepresenting the nature and stability of the ARS market.

In a complaint filed Thursday in the U.S. District Court for the Southern District of New York, Kentucky-based Ashland sued Morgan Stanley for securities fraud, alleging the financial giant made false and misleading statements about ARS and pressured the company to continue purchasing the securities...
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