Morgan Stanley Seeks $40M In Futures Contract Spat

Law360, New York (November 8, 2010, 4:42 PM EST) -- Morgan Stanley lodged a breach of contract suit Monday that seeks more than $40 million in damages from Peak Ridge Capital Group over natural gas futures trades gone bad.

The suit, filed in the U.S. District Court for the Southern District of New York, alleges that a Peak Ridge fund failed to maintain agreed-upon margins with respect to a futures trading account and that its bets were highly leveraged, risky and speculative.

Calls to Peak Ridge were not immediately returned, and an attorney for Morgan Stanley...
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