Reuters reports that a group of disgruntled investors has filed lawsuits in the US against Morgan Stanley, claiming that a high-tech mutual fund run by the firm engaged in biased stock-picking practices.
Morgan Stanley strongly deny the claims of investors who allege that the fund was influenced to buy and hold stocks in companies that generated lucrative investment banking fees for other parts of the firm.
Investors claim that this so-called 'policy' cost them millions. The Morgan Stanley Technology fund lost 48% in value last year and has fallen another 50% so far this year.
Have something to tell us about this article?