UK fashion conglomerate Frasers Group has confirmed that it has requested for New York court to secure evidence from the chief executive of Morgan Stanley, James Gorman, for a lawsuit it issued over a one billion dollar margin call.
Frasers initially filed the related lawsuit against the bank in London’s High Court back in 2021, stating that the firm acted “unlawfully” in maintaining the margin call which covered trades in German fashion label Hugo Boss.
Now, the group is seeking damages from Morgan Stanley, for its losses of around 50 million euros.
In a regulatory filing, Frasers said: “The London proceedings relate to a disputed margin call made by Morgan Stanley in May 2021 on Saxo Bank, in connection with certain put and call options in Hugo Boss which were ultimately held by Frasers. Saxo sought to pass the margin call through to Frasers.
“Frasers successfully sought and obtained injunctive relief in June 2021 preventing the banks taking any steps in connection with the margin call.
“Frasers considers Morgan Stanley to have acted unlawfully in making and maintaining the margin call and now seeks damages for its losses from Morgan Stanley in the region of approximately 50 million euros. There is no counterclaim against Frasers.”
The company is now requesting for testimonial and documentary evidence to be provided by Gorman for its case in New York.