Not stating an opinion either way, but describing what the lawsuit is actually about here. Morgan Stanley's analyst, Scott Devitt, adjusted their estimates and they then gave that information to high-end MS customers, but not to the public. The question is whether or not MS has a responsibility as an underwriter to disclose that information to an audience broader than its own clients as material information about the company, or if they had any additional material information about the company that led them to cut that estimate.

More: http://dealbreaker.com/2012/05/even-the-underwriters-were-si...