Class action on Pinnacle Notes

An important decision on the class action for the Pinnacle Notes in the USA will be decided soon - the hearing will start on 28 September.


By GRACE LEONG (Business Times)
A lawsuit involving allegations that Morgan Stanley & Co Inc sold rigged Pinnacle Notes as 'safe, conservative' products to a group of Singaporean investors including Singapore's oldest credit cooperative, costing them US$154.7 million in investment losses, is making its way through federal court in Manhattan.


A hearing is scheduled for Sept 28 in which the US District Court for the Southern District of New York will decide whether the case can proceed in the US or whether it should be dismissed and heard in Singapore, The Business Times has learned.


If approved, the Singapore investors will seek class-action status.


NOTE:
Under a class action (in the USA), any compensation received will be shared by all investors in the class, including the investors who were not involved in lodging the original complaint. There is no provision for a class action suit in Singapore.