Fiduciary Duty Owed by Underwriter to Issuer
In Breakaway Solutions, Inc. v. Morgan Stanley & Co., download file , the defendants sought reargument of Vice Chancellor Noble's opinion and order of August 27, 2004, which denied their Motions to Dismiss. The court's decision was based on New York law and the court found that a fiduciary duty claim was possible, under New York law, where an underwriter provided advice to an issuer in connection with an IPO, even though there was no breach of contract claim, at least for purposes of a Motion to Dismiss. The court's original opinion was based on a New York decision that was later reversed in part.
