Morgan Stanley faces legal action for snowball notes
Investors in a Snowball Note Issue underwritten by Morgan Stanley have filed a lawsuit against the US bank on claims of overpricing and a failure to disclose fees and profits made on the structured product. The notes were issued by Bayerische Landesbank and investors started buying them from HSBC Brokerage from August 2004. The individual investors have enlisted Aidikoff, Uhl & Bakhtiari, a California-based law firm to represent them.
“We believe the underwriter of the notes, Morgan Stanley, did not tell investors all the material information and, specifically, it did not disclose the significant underwriting commission and profits that it would receive from the sales of the products,” says Ryan Bakhtiari, a partner of Aidikoff, Uhl & Bakhtiari in California. “This makes the investments worth less than what they were told when
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