Morgan Stanley Sued Over Alleged 'Short-Swing' Trading

Law360, New York (June 16, 2011, 5:21 PM EDT) -- A Gramercy Capital Corp. shareholder sued Morgan Stanley & Co. Inc. and 10 subsidiaries in New York federal court Thursday over alleged “short-swing” transactions, saying the defendants violated the Securities Exchange Act by using insider information in executing the trades.

New Jersey resident Donna Chechele, an investor in Maryland-based Gramercy suing on behalf of the company, is seeking to recover any profits the companies made in the trades.

Short-swing transactions refer to when a company insider makes a profit by buying and selling the stock of...
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