Investors Seek Remand Of Morgan Stanley Securities Suit

Law360, New York (August 29, 2011, 1:49 PM EDT) -- A group of insurers and other investors in Morgan Stanley Mortgage Capital Inc. on Friday asked an Ohio federal court to remand their suit accusing the company of misleading investors into buying securities tied to bad mortgages, causing them enormous losses.

The plaintiffs say Morgan Stanley and related defendants wrongly removed the case to the federal court by hitching themselves to a bankrupt third party.

The defendants “claim federal bankruptcy jurisdiction based upon the bankruptcy of a single third party with only an attenuated connection to...
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