On or around 02/23/2006 (Other)
Filing Date: July 18, 2003
According to a press release dated February 27, 2006, the U.S. District Court for the Southern District of New York dismissed Shah's claims as time-barred (SLA 2004-41) and the Second Circuit affirms the ruling.
In a press release dated October 22, 2004, Southern District Judge Richard J. Holwell dismissed the case Shah v. Morgan Stanley, ruling that Morgan Stanley stock investors were on public notice about possible analyst conflicts at the investment bank and had no right to sue over a drop in the stock price. Judge Richard J. Holwell continued to state that numerous publications had detailed alleged conflicts by stock analysts and purchasers of the bank's stock cannot claim damages for a problem of which they should have been aware. The judge agreed with the defendants that Shah's claims were time-barred under the two-year limitations provision of the Sarbanes-Oxley Act. A Notice of Appeal was filed by the plaintiff and is pending in the U.S. Court of Appeals.
A class action lawsuit was filed against Morgan Stanley & Co., Inc., on behalf of shareholder Sandip Shah, under §10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. Specifically, the complaint alleges that Morgan Stanley’s analysts suffered under a conflict and were issuing favorable ratings on companies whose investment banking business they hoped to attract or keep. These undisclosed improper business practices artificially inflated the prices of Morgan Stanley stock during the class period. Further, these allegations reveal that Morgan Stanley made a number of false and misleading statements to hide its practices from investors.
The case was transferred from the U.S. District Court of Arizona to U.S. District Court for the Southern District of New York on November 2003.
Company & Securities Information
Defendant: Morgan Stanley & Co., Inc.
Industry: Investment Services
Headquarters: United States
Ticker Symbol: MWD
Company Market: New York SE
Market Status: Public (Listed)
About the Company & Securities Data
"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.
In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
First Identified Complaint
Sandip Shah v. Morgan Stanley and Co., Inc., et al.