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...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.