Northwest Community Healthcare said in a lawsuit its former investment adviser, Morgan Stanley, violated the Illinois hospital’s policy against derivatives to leverage its fixed-income portfolio and concealed how much of the portfolio was invested in risky mortgages. Erica Platt, a spokeswoman for Morgan Stanley, in an
e-mail declined to comment on the lawsuit, filed in U.S. District Court in Chicago. The lawsuit said Northwest Community, Arlington Heights, lost $7.1 million, based on the value of its assets as of September 2007. Polly Lleras, a spokeswoman for Northwest Community, which includes a 431-bed hospital, declined to comment on the lawsuit.
