What: Fraser sues Morgan Stanley for an allegedly unnecessary request made by the bank which led to subsequential losses.

Why it is important: Such legal battles are often not public, especially when they involve major retailers.

Frasers has approached a New York court, requesting Morgan Stanley CEO James Gorman to provide evidence for its UK lawsuit against the bank concerning a near $1bn margin call related to Hugo Boss trades. Frasers claims Morgan Stanley acted in bad faith when urging them to close derivative positions in Hugo Boss. Frasers contends the bank wrongly imposed a $995mn margin call in 2021, resulting in significant losses and additional costs. The company alleges the bank's actions were arbitrary and in breach of contract. Morgan Stanley counters that their decision was based on risk assessment and standard practices. The situation followed the 2021 Archegos Capital Management collapse, after which Morgan Stanley appeared to misjudge Frasers' characteristics with those of Archegos. Frasers insists Gorman reveal his knowledge about the bank's actions, referencing a previous CNBC interview as potential evidence.

Frasers in legal fight with Morgan Stanley