Morgan Stanley, Frasers settle UK lawsuit over $1 bln margin call

LONDON, May 3 (Reuters) – British retail tycoon Mike Ashley’s Frasers Group (FRAS.L), opens new tab has withdrawn its London lawsuit against Morgan Stanley (MS.N), opens new tab over a nearly $1 billion margin call, a spokesperson for the Wall Street bank said on Friday.

Frasers had sued Morgan Stanley for about 47 million euros ($50.5 million) after the bank imposed the margin call – security to cover possible losses – on the retailer’s trading position in German fashion group Hugo Boss in May 2021.

Ashley, whose fortune is estimated by Forbes, opens new tab to be worth $5.1 billion, gave evidence at the trial at London’s High Court in February that the demand for collateral left him in “total shock”.

Frasers has dropped its lawsuit before the court gave its ruling, Morgan Stanley said on Friday.

“Frasers Group plc and Mr Michael Ashley have both withdrawn their claims against Morgan Stanley on terms which do not involve any payment of monies by any party to any other,” a spokesperson for the bank said in a statement.

Source: REUTER