Morgan Stanley Exits Suit Over Faulty Notes For $5M

Law360, New York (September 9, 2013, 8:01 PM EDT) -- Morgan Stanley agreed Friday to shell out $5 million to settle claims that it negligently sold securities in Chinese chemical maker ShengdaTech after failing to properly investigate the company's shady financial results.

Despite a favorable ruling by a Nevada federal judge that tentatively dismissed claims against Morgan Stanley last month, the company agreed to the deal after learning the Delaware Public Employees' Retirement System, Oaktree Capital Management LP and other asset managers were gearing up for round two.

DPERS and a group of investment companies including...
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