Company: EUO
Filing Date: 2025-02-13
Form Type: S-1
Source: 0001193125-25-026199
Chunk: 442

Company: ProShares Trust II
Filing Date: 2025-02-13
Form: S-1
Chunk 442
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 will not be incurred from claims that have not yet been asserted or are not yet determined to be material. Bank Morgan Stanley & Co. Incorporated et al., which is pending in the Supreme Court of the State of New York, New York County (“Supreme Court of NY”). The complaint relates to a $275 million credit default swap (“CDS”) referencing the super senior portion of the STACK 2006-1 collateralized debt obligation (“CDO”). The complaint asserts claims for common law fraud, fraudulent inducement and fraudulent concealment and alleges that the Group and another Morgan Stanley Group affiliate misrepresented the risks of the STACK 2006-1 CDO to CDIB, and that the Group and another Morgan Stanley Group affiliate knew that the assets backing the CDO were of poor quality when it entered into the CDS with CDIB. The complaint seeks compensatory damages related to the approximately $228 million that CDIB alleges it has already lost under the CDS, rescission of CDIB’s obligation to pay an additional $12 million, punitive damages, equitable relief, pre- and post-judgment interest, fees and costs. On 28 February 2011, the court denied the Group’s and another Morgan Stanley Group affiliate’s motion to dismiss the complaint. On 21 December 2018, the court denied the Group’s and another Morgan Stanley Group affiliate’s motion for summary judgment and granted in part the Group’s and another Morgan Stanley Group affiliate’s motion for sanctions related to the spoliation of evidence. On 18 January 2019, CDIB filed a motion to clarify and resettle the portion of the court’s 21 December 2018 order granting spoliation sanctions. On 24 January 2019, CDIB filed a notice of appeal from the court’s 21 December 2018 order, and the Group and another Morgan Stanley Group affiliate filed a notice of appeal from the same order. On 7 March 2019, the court denied the relief sought by CDIB in its 18 January 2019 motion. On 21 May 2020, the Appellate Division, First Department (“First Department”), modified the Supreme Court of NY’s order` to deny the Group’s and another Morgan

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Stanley Group affiliate’s motion for sanctions relating to spoliation of evidence and otherwise affirmed the denial of the Group’s and another Morgan Stanley Group affiliate’s motion for summary judgment. On 19 June 2020, the Group and another Morgan Stanley Group affiliate moved for