Morgan Stanley, Invesco Sued Over ARS Buybacks

Law360, New York (July 23, 2010, 6:41 PM EDT) -- Fund investors have lodged two derivative suits alleging Morgan Stanley and Invesco Ltd. executives improperly redeemed hundreds of millions of dollars in auction rate securities at face value even though the market for the holdings had collapsed.

Investors in Morgan Stanley’s former Van Kampen asset management funds and Insured Municipal Income Trust fund filed complaints against the executives Thursday in the New York County Supreme Court.

By redeeming the so-called auction rate preferred securities “at what was (and still is) a significant premium to their market...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.