Morgan Stanley & Co. LLC has agreed to pay $150 million to settle a lawsuit brought by the state of California claiming the bank misled investors in the run-up to the mortgage crisis of the past decade.
Then-Attorney General Kamala Harris sued the bank in 2016 claiming Morgan Stanley and its affiliates downplayed the risk of mortgage-backed securities sold from 2003 to 2007 to investors including the California Public Employees’ Retirement System (CalPERS) and the California State Teachers Retirement System (CalSTRS). The Attorney General’s Office claimed the bank failed to disclose the quality of many home loans underlying the investments and, due to shortcomings in the bank’s due diligence, failed to remove poor quality loans from the investments.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]