Morgan Stanley Faces $750M Lawsuit: Allegations of Deceptive Deal Restructuring | Explained

Private equity firms Certares Management and Knighthead Capital have sued Morgan Stanley for $750 million for alleged fraud in a deal related to a high-speed rail project.

The suit alleges that Morgan Stanley concealed key terms of the agreement that impacted the preferred share issue of a Brightline subsidiary.

Although Morgan Stanley denies these allegations, the plaintiffs stated that the claims have evidence to support them.