Investors, including Irish nuns the Holy Faith Sisters, are suing Morgan Stanley for losses of almost €6m on a bond investment.
Court proceedings were launched in the High Court in London this week. They relate to the purchase of €6m worth of bonds in 2005 and 2006.
Other investors include the Sisters of Charity of Jesus and Mary and the Irish Veterinary Benevolent Fund. Some credit unions have also taken separate cases.
The investors claim that they paid €5.87m for a bond with guaranteed steady returns of 6.25% a year for four years.
They claim Morgan Stanley said the bonds would be sold immediately if downgraded to a certain level, but when downgraded to junk in January last year the bonds were not sold for five months.
Morgan Stanley, which made nearly €2 billion in profit between April and June, has not yet responded to the claims.
