News & Events

In a decision dated March 31, 2011, Judge Deborah A. Batts of the United States District Court for the Southern District of New York dismissed a shareholder derivative suit brought against Morgan Stanley, its Board of Directors, and several executive officers.  The shareholder-plaintiff alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and state law claims for breach of fiduciary duty, waste of corporate assets, and unjust enrichment arising out of Morgan Stanley’s losses in the subprime mortgage market in 2007.  The defendants filed a joint motion to dismiss the suit for failure to make a pre-suit demand on Morgan Stanley’s Board of Directors.  Judge Batts granted the motion, holding that the shareholder-plaintiff failed to adequately allege that a pre-suit demand on Morgan Stanley’s Board of Directors would have been futile.  Simpson Thacher represented the independent members of Morgan Stanley’s Board of Directors.

The Simpson Thacher team was comprised of Bruce D. Angiolillo, Jonathan K. Youngwood, Juan A. Arteaga and Susannah S. Geltman.