Thursday, May 19, 2005

Apparently, investors do not see the $1.4 billion verdict a Florida jury assessed against Morgan Stanley to be a major problem.
Bonds News said the company has said it will appeal the verdict and analysts are confident the verdict will either be reduced to little or nothing or tossed aside.
The jury awarded the damages after determining that Morgan Stanley had advance knowledge of the financial condition that led Sunbeam to declare bankruptcy in 1998, but still allowed Ron Perelman to sell his company, Coleman, to Sunbeam in exchange for Sunbeam stock. Shortly after the deal was finalized, Sunbeam, which has a plant in Neosho, filed for bankruptcy.
Morgan Stanley has 30 days to appeal the verdict.

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