NEW YORK, Nov 14, 2014 (BUSINESS WIRE) -- Kirby McInerney, representing a class of plaintiffs, filed papers today with United States District Judge Jesse M. Furman of the Southern District of New York seeking preliminary approval of a settlement in the case Ge Dandong et al v. Pinnacle Performance Limited et al. The plaintiffs are a group of Singapore retail investors who purchased credit linked notes that were linked to collateral debt obligations. The Notes were arranged and sold during 2006-2007 by Morgan Stanley and related entities including the Pinnacle Performance Limited SPV. The Notes lost most of their value soon after issuance.
The settlement stems from plaintiffs' claims that when arranging and marketing the Pinnacle Notes, defendants concealed conflicts of interest and inherent risks that later materialized and caused almost total loss for the investor class. Plaintiffs first brought their action in October 2010. They fended off multiple attempts by defendants to dispose of the case in both New York and Singapore courts before obtaining class certification late last year. The parties reached a settlement following extensive discovery and just prior to the beginning of pre-trial substantive motion practice.
"This settlement will provide meaningful compensation to those who were harmed by the Pinnacle Notes' collapse." said Kirby McInerney partner Daniel Hume. "It also allows these investors, many of which are retirees on fixed incomes, to close a difficult chapter of their lives and move forward."
The investor class bought about $129 million of issued Pinnacle Notes. Following the Notes' collapse, many investors received partial re-payments from the distributors and brokers in Singapore that sold the Notes for Morgan Stanley. Plaintiffs' settlement here represents a substantial portion of the remaining amount that could have been recovered for the class in the case.
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