The complaint alleging abusive licensing practices was filed under seal in the U.S. District Court for the Eastern District of Pennsylvania.
The setback for one of the industry’s best known hedge funds is another example of recent market turmoil as automated volatility curbs kicked in.
"Our gut tells us that a 50% or deeper decline from the February top might be the ultimate path," the activist firm's latest client letter says.
In their model, there could be rolling shutdowns for the next two years, pushing the market down another 60%. Morgan Stanley disagrees.