Morgan Stanley, Ratings Agencies Can't Kill Investor Suit

Law360, New York (June 7, 2012, 10:40 PM EDT) -- A New York federal judge on Thursday preserved shareholders’ negligent misrepresentation claims against Morgan Stanley & Co. Inc. and several ratings agencies in a suit over the collapse of structured investment vehicles, ruling opinions are sufficient cause for legal action under New York state law.

U.S. District Judge Shira A. Scheindlin rejected the defendants’ contention that credit ratings are predictive opinions that cannot be challenged for negligence, and denied their motion to reconsider her May ruling paring down investors’ claims against them to leave only their...
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