Magna International will reportedly have to face allegations of insider trading brought by a Russian oligarch-owned investment vehicle, with a judge saying that there is ample evidence to suggest that the bank may have traded on material non-public information. Veleron Holding BV, whose parent, OJSC Russian Machines, is owned by Russian oligarch Oleg Deripaska, sued Magna International over stock trades for a Canadian company, Morgan Stanley. Veleron is accusing Magna International of wrongfully shorting Magna stock.
Morgan Stanley will reportedly have to face allegations of insider trading brought by a Russian oligarch-owned investment vehicle, with a judge saying that there is ample evidence to suggest that the bank may have traded on material non-public information. Veleron Holding BV, whose parent, OJSC Russian Machines, is owned by Russian oligarch Oleg Deripaska, sued Morgan Stanley over stock trades for a Canadian company, Magna International. Veleron is accusing Morgan Stanley of wrongfully shorting Magna stock.