Morgan Stanley Ducks Suit Over Timing Of ARS Redemptions
By Cara Salvatore (October 28, 2014, 7:49 PM EDT) -- A New York state judge has dismissed derivative suits against Morgan Stanley Investment Advisors Inc. and various Invesco Van Kampen-branded trusts, saying the trust officers exhibited fair business judgment — not a breach of fiduciary duty — when they declined to sue over allegedly ill-timed auction-rate securities redemptions.
The suits derivatively accused Morgan Stanley and Van Kampen Asset Management Inc. executives of improperly causing the redemption of hundreds of millions of dollars in auction-rate securities at face value despite the collapse of the holdings' market. Judge Marcy Friedman of New York Supreme Court in New York County said the trusts clearly...
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