Morgan Stanley, Goldman Unable to Shake Archegos-Tied Suit (2)

ViacomCBS Inc. investors can sue Morgan Stanley, Goldman Sachs Group Inc., and Wells Fargo & Co.—banks that underwrote the media company’s 2021 secondary stock offerings—over allegations the firms had conflicting roles that should’ve been disclosed, a state appeals court decided.

Investors allege the banks were preparing to dump Viacom stock to avoid losses tied to Archegos Capital Management’s collapse while they underwrote offerings of Viacom stock to the public.

The investors, who bought Viacom stock in those offerings, argue it was a violation of federal securities laws for the banks to conceal what plaintiffs called a “debilitating ...