Goldman, Morgan Stanley Get Dismissal of Archegos-Related Suits

Investors in several companies didn’t adequately plead claims against Goldman Sachs Group Inc. and Morgan Stanley over their alleged roles in Archegos Capital Management’s collapse, a federal court ruled.

The investors failed to show insider trading by the investment banks under any of three securities law provisions, Judge Paul A. Crotty said March 31 for the US District Court for the Southern District of New York.

The litigation stems from events involving Archegos, a private family capital firm managing the assets of investor Bill Hwang—about $36 billion, according to the court. It allegedly used a complex swap arrangement with the ...