KING COUNTY, WA v. IKB DEUTSCHE INDUSTRIEBANK AG

No. 09 Civ. 8387 (SAS).

751 F.Supp.2d 652 (2010)

KING COUNTY, WASHINGTON, Iowa Student Loan Liquidity Corporation, Together and on Behalf of All Others Similarly Situated, Plaintiffs, v. IKB DEUTSCHE INDUSTRIEBANK AG, IKB Credit Asset Management, GmbH, Moody's Investors Service, Inc., Moody's Investors Service Limited, the McGraw Hill Companies, Inc. (d/b/a Standard & Poor's Ratings Services), Fitch, Inc., Morgan Stanley & Co. Incorporated, Morgan Stanley & Co. International Limited, Winfried Reinke and Stefan Ortseifen, Defendants.

United States District Court, S.D. New York.

October 29, 2010.


Attorney(s) appearing for the Case

Anne L. Box, Esq. , Patrick J. Coughlin, Esq. , Daniel S. Drosman, Esq. , Nathan R. Lindell, Esq. , Jessica T. Shinnefield, Esq. , David C. Walton, Esq. , Darryl J. Alvarado, Esq. , X Jay Alvarez, Esq. , Christina A. Royce, Esq. , Robbins Geller Rudman & Dowd LLP, San Diego, CA, Samuel H. Rudman, Esq. , David A. Rosenfeld, Esq. , Robert M. Rothman, Esq. , Jarrett S. Charo, Esq. , Robbins Geller Rudman & Dowd LLP, Melville, NY, Luke O. Brooks, Esq. , Jason C. Davis, Esq. , Robbins Geller Rudman & Dowd LLP, San Francisco, CA, for Plaintiffs King County, Washington and Iowa Student Loan Liquidity Corporation.

Antonio Jorge Perez-Marques, Esq. , James P. Rouhandeh, Esq. , Davis Polk & Wardwell L.L.P., New York, NY, for Defendants Morgan Stanley & Co., Inc. and Morgan Stanley & Co. International Limited.

John D. McFerrin-Clancy, Esq. , Zachary D. Rosenbaum , Lowenstein Sandler P.C., New York, NY, Thomas E. Redburn, Jr., Esq. , Jennifer Jane McGruther, Esq. , Lowenstein Sandler P.C., Roseland, NJ, for Defendants IKB Deutsche Industriebank AG and IKB Credit Asset Management, GmbH.

Floyd Abrams, Esq. , Andrea R. Butler, Esq. , Jason M. Hall, Esq. , Brian T. Markley, Esq. , Dean I. Ringel, Esq. , Tammy L. Roy, Esq. , Adam N. Zurofsky, Esq. , Cahill Gordon & Reindel LLP, New York, NY, for Defendant The McGraw Hill Companies, Inc. d/b/a Standard & Poor's Rating Services.

James J. Coster, Esq. , Justin E. Klein, Esq. , James J. Regan, Esq. , Joshua M. Rubins, Esq. , Aaron M. Zeisler, Esq. , Satterlee Stephens Burke & Burke LLP, New York, NY, for Defendants Moody's Investors Service Limited and Moody's Investors Service, Inc.

Andrew J. Ehrlich, Esq. , Martin Flumenbaum, Esq. , Roberta A. Kaplan, Esq. , Mark S. Silver, Esq. , Tobias J. Stern, Esq., Paul , Weiss, Rifkind, Wharton & Garrison LLP, New York, NY, for Defendant Fitch, Inc.

Thomas S. Wiswall, Esq. , Phillips Lytle LLP, Rochester, NY, for Defendant Stefan Ortseifen.

Fran M. Jacobs, Esq. , Duane Morris LLP, New York, NY, for Defendant Winfried Reinke.


OPINION AND ORDER

SHIRA A. SCHEINDLIN, District Judge:

I. INTRODUCTION

Two institutional investors, King County, Washington and Iowa Student Loan Liquidity Corporation bring this putative class action for common law fraud in connection with the collapse of Rhinebridge, a structured investment vehicle ("SIV"). On June 10, 2010, plaintiffs filed an amended consolidated complaint ("First Amended Complaint" or "FAC") adding Morgan Stanley

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