Morgan Stanley faces Russian billionaire insider trading claim lawsuit

Morgan Stanley building

In a trial starting on Monday, Morgan Stanley will confront a Russian billionaire's claims that it illegally short-sold a company based on inside information at the height of the financial crisis.

Reuters reports that the lawsuit against the global financial services firm is being brought in Manhattan federal court by Veleron, a company created as an investment vehicle by Russian tycoon Oleg Deripaska, who is also the founder of United Company Rusal, one of the world's largest aluminum companies.

Veleron claims Morgan Stanley obtained inside information through a relationship it had with the company's lender.

The dispute arose from Deripaska's 2007 investment through Veleron in Canadian auto parts maker Magna International. That investment was financed with a $1.2bn loan from BNP Paribas, with Veleron's Magna shares as collateral.

To access the complete Reuters article hit the link below:

Morgan Stanley to face Russian tycoon's insider trading claims

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