Morgan Stanley ARS Disclosures Take Stage In 2nd Circ.

Law360, New York (March 9, 2011, 8:43 PM EST) -- Second Circuit judges on Wednesday homed in on the adequacy of auction rate securities-related disclosures as Valvoline motor oil maker Ashland Inc. argued to reverse the dismissal of a suit over $66.3 million invested in ARS through Morgan Stanley.

Judge Ralph K. Winter asked a lawyer for Ashland in the U.S. Court of Appeals for the Second Circuit about whether disclosures about Morgan Stanley potentially participating in the market for reasons such as lack of demand should have put the investor on guard about potential liquidity...
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