Morgan Stanley was hit with a $750 million lawsuit Monday by private-equity firms alleging fraud related to their investment in Brightline Holdings, a high-speed rail company.
The lawsuit, filed in Manhattan by affiliates of Certares Management and Knighthead Capital Management, accused the bank of breach of contract, fraud and breach of the implied covenant of good faith and fair dealing over the restructuring of a deal in which the firms invested in a loan to Brightline, which is also named as a defendant.
