Morgan Stanley Wins Dismissal Of Libertas CDO Suit

Law360, New York (September 30, 2011, 5:44 PM EDT) -- A New York federal judge on Friday tossed a putative class action accusing Morgan Stanley & Co. Inc. of defrauding investors by concealing the real risks of $1.2 billion in mortgage-backed notes, finding the plaintiffs failed to plead sufficient details.

In dismissing the case, U.S. District Judge Barbara Jones allowed the plaintiffs leave to file an amended complaint if they choose.

The action, which alleged Morgan Stanley knew its 2007 Libertas collateralized debt obligation was secured by assets that were weaker than what was indicated to...
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