An investment bank is close to a settlement with two groups of nuns, an Irish charity for veterinarians and more than 100 private investors who say they lost €16m in a bond sale.

IRISH brokerage firm Bloxham must defend a lawsuit filed by nuns, a veterinary fund and 85 other investors claiming they lost money when Morgan Stanley failed to sell notes soon enough after they were downgraded.

MORGAN Stanley has moved to deflect responsibility over a bond deal, which has resulted in a number of Irish investors – including two orders of nuns – taking legal action against the US investment bank.

A group of Irish nuns have launched legal action against US investment bank, Morgan Stanley.