Morgan Stanley has finally agreed to buy back $323 million worth of auction-rate securities from it’s New Jersey investors to settle allegations that it committed fraud and misled customers.
During the 2008 financial crisis, when banks stopped using their own cash to support the market, investors ended up being stuck with bonds that they couldn’t sell. These securities were marketed to clients as being more profitable than cash since they could be resold at periodic auctions run by the banks. In 2008, a $4.5 billion settlement was ordered to be paid by Morgan Stanley to buy back these misrepresented securities nationally, which they did do. If you were a New Jersey client, now is your time to sell these back.
If you would like more information on this Morgan Stanley class action lawsuit, or if you feel you may have a claim in this settlement, please get in touch with one of our Morgan Stanley fraud attorneys in Chicago, IL.