Abu Dhabi Commercial Bank, et al. v. Morgan Stanley & Co., et al.,

Opinion for Motion to Dismiss in Abu Dhabi Commercial Bank, et al. v. Morgan Stanley & Co., et al.,

more+
less-

A federal judge ruled that investors in a structured investment vehicle containing mortgage-backed securities sufficiently alleged an actionable misstatement against the credit rating agencies and the investment bank that placed the rated notes.

The rating agencies had long argued that their ratings of securities were constitutionally protected opinion. But U.S. District Judge Shira Scheindlin ruled in this opinion that the ratings of securities that were distributed to a limited number of investors don't deserve the same free-speech protection as more general ratings of corporate bonds that were widely disseminated.

LOADING PDF: If there are any problems, click here to download the file.

Published In: Business Torts Updates, Constitutional Law Updates, Securities Updates

Reference Info:Decision | Federal, 2nd Circuit, New York | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Doug Cornelius | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »