Morgan Stanley Can't Dodge Investors' Claims Over $9B SIV

Law360, New York (October 5, 2012, 10:16 PM EDT) -- A New York federal judge on Friday refused to dismiss a putative class of investors' negligent misrepresentation claims against Morgan Stanley & Co. in a suit against the investment bank and two rating agencies over the collapse of a $9 billion structured investment vehicle.

U.S. District Judge Shira A. Scheindlin said that despite the lack of any actionable misstatements attributed to Morgan Stanley, the firm could still face negligent misrepresentation claims because the plaintiffs had sufficiently alleged a special relationship that required Morgan Stanley to provide...
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