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Christopher P. Johnson, Charles M. Miller, Joshua Greenblatt


On behalf of specialty chemical company Ashland Inc., KBT&F filed a lawsuit on June 11, 2009 against Morgan Stanley, alleging that from September 2007 through February 2008, the investment bank fraudulently induced Ashland to purchase and hold auction rate securities through false representations that the securities -- which were based on federally guaranteed student loan obligations -- were safe and liquid investments. The complaint, filed in the United States District Court for the Southern District of New York, alleges that Ashland was stranded with over $66 million in illiquid securities when the market for auction rate securities collapsed in February 2008. KBT&F attorneys Christopher Johnson, Charles Miller and Josh Greenblatt are leading Ashland's representation.