ShengdaTech Note Buyers Sue Auditors, Morgan Stanley

Law360, New York (June 6, 2012, 8:49 PM EDT) -- The Delaware Public Employees' Retirement System and a group of asset managers hit KPMG LLP, Hansen Barnett & Maxwell PC and Morgan Stanley & Co. with two suits Wednesday over their alleged failure to spot misleading statements made by now-bankrupt chemical maker ShengdaTech Inc.

DPERS and a group of investment companies including Oaktree Capital Management LP launched separate suits alleging that ShengdaTech, in the midst of spiraling into bankruptcy, sold 6 and 6.5 percent notes to the investing public based on falsified financial results, making the...
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