Bloomberg Law
Oct. 12, 2022, 9:08 PM

Morgan Stanley Must Face Claims it Bled Tops Grocery Chain Dry

Alex Wolf
Alex Wolf

A Morgan Stanley unit and other previous owners of Tops Friendly Markets must face the bulk of a lawsuit accusing the investors of rendering the grocery chain insolvent while paying themselves $375 million in dividends.

A trust formed out of the 2018 bankruptcy plan for Tops Holding II Corp. can continue pressing claims against Morgan Stanley and other private equity investors to recoup funds for Tops’ unsecured creditors, Judge Robert Drain of the US Bankruptcy Court for the Southern District of New York ruled in a 109-page opinion Wednesday.

Morgan Stanley Investment Management Inc., HSBC Private Equity Partners USA and ...

Learn more about Bloomberg Law or Log In to keep reading:

Learn About Bloomberg Law

AI-powered legal analytics, workflow tools and premium legal & business news.

Already a subscriber?

Log in to keep reading or access research tools.