Morgan Stanley Plaintiffs Ask Judge To Rethink Halt

Law360, New York (July 9, 2009, 12:00 AM EDT) -- Plaintiffs in a shareholder derivative suit alleging Morgan Stanley directors aided the manipulation of the auction rate securities market have asked a federal court to reconsider a ruling that halted proceedings so the broker-dealer's board of directors could consider investigating the claims first.

In a June 24 ruling, Judge Alvin K. Hellerstein of the U.S. District Court for the Southern District of New York ruled the plaintiffs were not exempted from first making a demand on Morgan Stanley's board and affording the defendants the chance to...
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