Irish nuns from the Holy Faith Sisters are among a group of investors suing Morgan Stanley for losses of almost €6m on a bond investment.
Court proceedings were launched in the High Court in London this week and relate to the purchase 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 taken separate cases.
The investors claim that they paid €5.87m for 'hybrid structured euro constant maturity notes' 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 €2bn in profit between April and June, has not yet responded to the claims.
This morning in a statement the nuns said: 'We, the Sister of the Holy Faith, were investors in the said company, and we are taking advice and action to recoup our losses.'
