KING COUNTY v. IKB DEUTSCHE INDUSTRIEBANK AG

No. 09 Civ. 8387 (SAS).

KING COUNTY, WASHINGTON AND IOWA STUDENT LOAN LIQUIDITY CORPORATION, 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, and MORGAN STANLEY & CO. INTERNATIONAL LIMITED Defendants.

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

July 31, 2012.


Attorney(s) appearing for the Case

Daniel S. Drosman, Esq. , Jessica T. Shinnefield, Esq. , Darryl J. Alvarado, Esq. , Anne L. Box, Esq. , James A. Caputo, Esq. , Patrick J. Coughlin, Esq. , Nathan R. Lindell, Esq. , David C. Walton, Esq. , X Jay Alvarez, Esq. , Christina A. Royce, Esq. , Robbins Geller Rudman & Dowd LLP, San Diego, California,

Luke O. Brooks, Esq. , Jason C. Davis, Esq. , Robbins Geller Rudman & Dowd LLP, San Francisco, California.

Samuel H. Rudman, Esq. , Jarrett S. Charo, Esq. , David A. Rosenfeld, Esq. , Robert M. Rothman, Esq. , Robbins Geller Rudman & Dowd LLP, Melville, New York, For Plaintiffs King County, Washington and Iowa Student Loan Liquidity Corporation.

James P. Rouhandeh, Esq. , Antonio Jorge Perez-Marques, Esq. , William Ross Miller, Jr. Esq. , Christopher Joseph Roche, Esq. , Andrew Dickens Schlichter, Esq. , Jessica Lynn Freese, 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, Esq. , Lowenstein Sandler PC, New York, New York.

Thomas E. Redburn, Jr., Esq. , Jennifer Jane McGruther, Esq. , Michael James Hampson, Esq. , Lowenstein Sandler PC, Roseland, New Jersey, For Defendants IKB Deutsche Industriebank AG and IKB Credit Asset Management, GmbH.

Mario Aieta, Esq. , James J. Coster, Esq. , Dai Wai Chin Fenman, Esq. , Joshua M. Rubins, Esq. , Justin E. Klein, Esq. , James J. Regan, Esq. , Joshua M. Rubins, Esq. , Aaron M. Zeisler, Esq. , Satterlee Stephens Burke & Burke LLP, New York, New York, For Defendants Moody's Investors Service Limited and Moody's Investors Service, Inc.

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

Andrew J. Ehrlich, Esq. , Martin Flumenbaum, Esq. , Donna M. Ioffredo, Esq. , Roberta A. Kaplan, Esq. , Mark S. Silver, Esq. , Tobias J. Stern, Esq. , Julia Tarver-Mason Wood, Esq. , Paul, Weiss, Rifkind, Wharton & Garrison LLP, New York, New York, For Defendant Fitch, Inc.


OPINION AND ORDER

SHIRA A. SCHEINDLIN, District Judge.

I. INTRODUCTION

Institutional investors King County, Washington and Iowa Student Loan Liquidity Corporation (together, "Plaintiffs") bring this action to recover losses stemming from the October, 2007 collapse of Rhinebridge, a structured investment vehicle. Plaintiffs' Second Amended Complaint included claims of common law fraud, negligent misrepresentation, negligence...

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