Morgan stanley targeted in lehman lawsuit

EmploymentCrossing.com Morgan Stanley has announced it is the target of a class action lawsuit related to its involvement as an underwriter of a preferred share offering for Lehman Bros. earlier this year. "The complaint alleges that the documents for this offering contained material misstatements and missions and asserts claims against the company under Section 11 of the Securities Act of 1933, as amended," Morgan Stanley said in a quarterly report filed with the SEC. The company said that although it believes it has raised all the capital it needs through the end of the year, that, "to the extent we are not able to access the debt markets on acceptable terms in the future, we may increase our use of deposit funding and other funding sources generally available to a financial holding company, and/or may seek to raise funding and capital through equity issuance." Morgan Stanley is a global financial services provider headquartered in New York City. In September, the Federal Reserve allowed Morgan Stanley to change its status from investment bank to bank holding company.