Case Page

 

Case Status:    DISMISSED    
On or around 05/13/2013 (Court's order of dismissal)

Filing Date: February 12, 2008

According to the complaint, during the Class Period the Company’s share price benefited from the market’s perception that Morgan Stanley compared to other investment banks that underwrote larger quantities of these CDOs had relatively low exposure to credit losses related to the subprime mortgage-backed CDOs that it originated. Unbeknownst to the investors, however, during the Class Period Morgan Stanley failed to disclose its significant exposure to losses related to the declining value of the subprime mortgage-related derivatives that the Company traded for its own proprietary account.

On April 30, 2008, a notice of motion to appoint lead plaintiffs and lead counsels was filed by certain groups and individuals. As a result, an order granting motion to appoint lead plaintiffs and counsels was entered on June 20, 2008. Plaintiffs filed their Amended Class Action Complaint on November 24, 2008. On January 23, 2009, the judge entered an order transferring the case to the U.S. District Court for the Southern District of New York.

On April 27, 2009, the defendants filed a motion to dismiss the Plaintiff's Amended Class Action Complaint.

On April 4, 2011, Judge Deborah A. Batts granted the Defendants' Motion to Dismiss the Amended Class Action Complaint pursuant to Rule 9(b) and Rule 12(b) (6) of the Federal Rules of Civil Procedure and section 78u-4(b) of the Private Securities Litigation Reform Act. Plaintiffs may file a second amended complaint that presents adequate allegations of loss causation with respect to the Company's misstatements of its subprime valuations in the third and/or fourth quarters of 2007. Plaintiffs may also attempt to amend their claims regarding the Company's misstatements of its subprime exposure. All other claims are dismissed with prejudice. Any amended complaint shall be filed within 45 days of the date of this Order. Failure to do so shall result in dismissal of this case in its entirety.

On June 9, 2011, the plaintiffs filed a Second Amended Class Action Complaint. The defendants responded by filing a motion to dismiss on August 8, 2011.

On January 18, 2013, a Memorandum and Order was issued by the Court granting the Defendants' Motion to Dismiss the Second Amended Class Action Complaint pursuant to Rule 9(b) and Rule 12(b) (6) of the Federal Rules of Civil Procedure with prejudice.

COMPANY INFORMATION:

Sector: Financial
Industry: Investment Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: MS
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.
COURT: S.D. New York
DOCKET #: 08-CV-00963
JUDGE: Hon. George P. Schiavelli
DATE FILED: 02/12/2008
CLASS PERIOD START: 07/10/2007
CLASS PERIOD END: 11/07/2007
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Lee Hong Degerman Kang & Schmadeka
    660 S. Figueroa St., Lee Hong Degerman Kang & Schmadeka, CA 90017
    213.623.2221 213.623.2211 ·
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 09-CV-02017
JUDGE: Hon. George P. Schiavelli
DATE FILED: 06/09/2011
CLASS PERIOD START: 06/20/2007
CLASS PERIOD END: 11/19/2007
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Kessler Topaz Meltzer & Check LLP (Pennsylvania)
    280 King of Prussia Road, Kessler Topaz Meltzer & Check LLP (Pennsylvania), PA 19087
    610.667.7706 610.667.7706 · info@ktmc.com
  2. Labaton Sucharow LLP
    140 Broadway, Labaton Sucharow LLP, NY 10005
    212.907.0700 212.818.0477 · info@labaton.com
No Document Title Filing Date