In Hicks v. Morgan Stanley & Co., No. 01 Civ. 10071 (RJH) (S.D.N.Y.) (Holwell, J.), Labaton Sucharow, as co-lead counsel, brought innovative claims under Section 11 of the Securities Act of 1933 involving the Morgan Stanley Prime Income Trust, a mutual fund which invests its assets in senior bank loans. Plaintiffs alleged in essence that Morgan Stanley overpriced certain of their loan interests for which market quotations were readily available, in violation of SEC rules. After lengthy discovery, Labaton Sucharow achieved a settlement of $10 million, which represents 40% of the class's damages under certain damage assessment scenarios. The Court complimented Labaton Sucharow on achieving this result for the benefit of the class, and awarded the Firm's client a significant award in reimbursement of lost wages pursuant to the PSLRA.
The Court approved the settlement on October 24, 2005 and entered final judgment on November 17, 2005. Settlement checks have been mailed to authorized claimants.