$1.58 Billion Judgment Against Morgan Stanley Reversed

In a 2-1 decision, a Florida state appellate court today reversed the $1.58 billion judgment against Morgan Stanley on the grounds that plaintiff failed to prove compensatory damages by not establishing the fraud-free value of the Sunbeam stock on the date of the merger. The court did not reach other issues on appeal, including whether the trial court improperly entered a partial default against Morgan Stanley as a sanction for discovery misconduct.

Morgan Stanley & Co., Inc. v. Coleman (Parent) Holdings, Inc., No. 4D05-2606 (Fla. Dist. Ct. App. Mar. 21, 2007)

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