FLORIDA (Bloomberg) — Financier Ronald Perelman lost his bid to restore a $1.57 billion jury award against Morgan Stanley over money he lost on the 1998 sale of Coleman to the firm's client, Sunbeam Corp.

The Florida Supreme Court yesterday declined to hear Perelman's appeal of a lower court ruling throwing out the award. Perelman claimed Morgan Stanley, the second-largest US securities firm by market value, duped him into selling Coleman, a camping-equipment maker, for cash and millions of Sunbeam shares. The stock became worthless after Sunbeam's subsequent bankruptcy.

Morgan Stanley had put aside $360 million in reserves to deal with a possible loss in the case, according to a company filing. Morgan Stanley, the second-biggest US securities firm after Goldman Sachs Group, said last month that it lost $3.7 billion on subprime mortgage-related bets in September and October and may lose more in November.

"This is incrementally positive but unlikely to alter the near-term perception or economics of their business," said Douglas Ciocca, who helps manage $1.6 billion, including Morgan Stanley shares, at Renaissance Financial in Leawood, Kansas. "The market is in a fit of myopia as it relates to the latest regurgitation of credit-driven calamities."

The firm is expected to report its first-ever quarterly loss next week when it provides results for the fiscal fourth quarter that ended November 30. The average estimate of eight analysts surveyed by Bloomberg is for a net loss of $454.5 million, or 39 cents a share.

"We are pleased that the Florida Supreme Court has decided not to review the Court of Appeals' decision dismissing Coleman's claims with no opportunity for retrial," Morgan Stanley said in a statement e-mailed by spokesman Mark Lake.

"We believe this brings Coleman's claims against Morgan Stanley to an end, and we are happy to be putting this matter behind the firm."

Morgan Stanley, now led by chief executive officer John Mack, hired new lawyers to overturn the verdict in favour of Perelman, who controls makeup company Revlon. A jury in West Palm Beach, Florida awarded Perelman $1.45 billion on his fraud claims against Morgan Stanley in May 2005. Judge Elizabeth Maass increased the award to $1.57 billion after adding interest.

"The court has made its decision and we will abide by it," Christine Taylor, Perelman's spokesman, said in an interview.