Wednesday, December 14, 2011

Business Times: Suit over Pinnacle Notes takes a turn for Morgan Stanley

US judge orders investment bank
to drop 'vexatious' S'pore court action
A legal battle involving a group of Singapore investors of Morgan Stanley's failed Pinnacle Notes reached a fever pitch after the US investment bank resorted to what a federal judge deemed 'vexatious' means to block their case from proceeding in New York.
US District Judge Leonard Sand on Monday ordered Morgan Stanley to drop its 'vexatious' Singapore High Court action to stop 18 Pinnacle Notes investors from pursuing their lawsuit outside of Singapore to recover US$154.7 million in investment losses.
Morgan Stanley, whose application for an 'expedited' anti-suit injunction is due to be heard today in High Court, may be forced to withdraw its Singapore action because of Monday's ruling.
If the bank refuses to drop its Singapore case, it may be held in contempt by federal court in New York, lawyers said.
Morgan Stanley yesterday declined to comment on whether it will drop its Singapore action, but said it 'respectfully disagrees with the (federal) court's ruling.'

Read the Business Times for the full story.

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