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. The lawsuit was filed in Ontario Superior Court and alleges that Morgan Stanley, which has been under investigation since last year, failed to disclose information about its own internal investigations into alleged insider trading.
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.