BEVERLY HILLS, Calif., Sept. 11, 2007 (PRIME NEWSWIRE) — Aidikoff, Uhl & Bakhtiari filed a class action lawsuit against Morgan Stanley (NYSE:MS – News) on August 30, 2007 in the United States District Court for the Central District of California, on behalf of all persons who purchased or otherwise acquired “Snowball notes” issued by Bayerische Landesbank and underwritten by Morgan Stanley Dean Witter & Co. (“Morgan Stanley”) between August 30, 2004 and present, inclusive, (the “Class Period”).
Snowball notes are complex structured financial products underwritten by Morgan Stanley that have components of straight debt instruments and derivatives combined into one investment structure. Snowball note returns are tied to quarterly fluctuations of the London Interbank Offered Rate (“LIBOR”).
The complaint alleges that Defendants violated Sections 10(b) of the Securities Exchange Act of 1934, Rule 10b-5 promulgated thereunder, Section 12(2) of the Securities Act of 1933 and committed common law fraud in connection with the underwriting and offering of Snowball notes. Specifically, the complaint alleges that Defendants artificially overpriced the notes at the time of sale and failed to disclose material information including fees, corporate profits that benefited the issuer and underwriter and costs. The complaint alleges that defendant Morgan Stanley intentionally hid the true value of the investment in Snowball notes when underwritten and sold to the investing public.
Plaintiffs are represented by the law firms of Aidikoff, Uhl & Bakhtiari and Johnson & Johnson, LLP. Aidikoff, Uhl & Bakhtiari and Johnson & Johnson are premier law firms in the field of financial and class action litigation. Aidikoff, Uhl & Bakhtiari represents individual and institutional investors in disputes with financial institutions across the country.
If you purchased Snowball notes underwritten by Morgan Stanley during the Class Period, you may qualify to serve as Lead Plaintiff. Lead Plaintiff papers must be filed with the court no later than November 12, 2007. If you would like to consider serving as lead plaintiff or have any additional questions about the lawsuit, please contact: Ryan K. Bakhtiari.