Morgan Stanley will this week be served with a class action by a group of Irish investors, including hundreds of nuns, who claim the US bank failed to satisfy its contractual obligations related to €6m of bonds they purchased, resulting in the near total wipe-out of their investment.

A claim was filed yesterday afternoon with the High Court entitled The Sisters of Jesus and Mary v Morgan Stanley. In it, 88 investors including the Sisters of Charity of Jesus and Mary, the Holy Faith Sisters and the Irish Veterinary Benevolent Fund, allege that the improper actions of Morgan Stanley led them to lose at least €5m, or 80% of their total investment, while the investment bank made a fee. The claimants are represented by Stewarts Law, a law firm that specialises in litigating against banks.