Morgan Stanley Sued for $750 Million by Private Equity Firms Claiming Fraud
- Certares, Knighthead say they were cheated in Brightline deal
- Morgan Stanley says it believes the claims have no merit
Morgan Stanley headquarters in New York City.
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Morgan Stanley was sued for at least $750 million by private equity firms who claim they were defrauded in a deal to invest in a credit agreement for a luxury high-speed rail line.
Certares Management LLC and Knighthead Capital Management LLC filed suit Monday in New York state court, alleging Morgan Stanley unlawfully restructured the deal by which they invested in a loan to Miami-based Brightline Holdings, a Fortress Investment Group-backed company currently developing a Los Angeles-Las Vegas rail line. Brightline is also a defendant in the suit.