Morgan Stanley sued Sterling Stamos funds over $17.6 million in distributions, which it claims were withheld from a hedging affiliate that owned units in a liquidating trust set up by the money management firm
The Sterling Stamos firm was established by Peter Stamos, chairman of Major League Baseball’s investment advisory board, with the New York Mets owners as partners, and has $9.5 billion of assets under management, according to court documents.
The firm’s funds told Morgan Stanley they were holding distributions in escrow because they feared they would face competing claims on the money from two of the investment bank’s units even after being told there was no risk of that, Morgan Stanley said in a filing in New York state court yesterday.
“Even with these airtight assurances, defendants continue to refuse to turn over the funds due to MS hedging,” it said in the filing.
Morgan Stanley is seeking return of the money, plus interest. Stamos didn’t immediately return a call seeking comment on the lawsuit.
The case is Morgan Stanley & Co. v. Sterling Stamos Security Fund LP, 650796/2012, Supreme Court of the State of New York, County of New York.
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Linda Sandler in New York at email@example.com