Morgan Stanley defeated claims by Russian tycoon Oleg Deripaska that it used inside information about his failing $1.5bn investment in an auto-parts maker to illegally profit from its own short selling.
Deripaska, owner of United Co. Rusal Plc, the world’s biggest aluminum producer, sued Morgan Stanley and the lender on the deal, BNP Paribas SA, claiming they devalued his 20% stake in Magna International Inc. at the peak of the financial crisis by betting that the price of the shares would fall. Paris-based BNP Paribas loaned Deripaska most of the money for the investment, with his Magna shares held as collateral.
The trial was only against New York-based Morgan Stanley, after BNP Paribas was dismissed as a defendant.
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