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Settlement Reached by MBIA in Mortgage-Backed Securities Case Against Morgan Stanley


A suit brought by BSF and client MBIA alleging fraud by Morgan Stanley and certain Morgan Stanley affiliated entities has reached a favorable settlement. MBIA brought claims of fraudulent inducement and breach of contract in New York State Supreme Court in December 2010, charging Morgan Stanley with misrepresenting a pool of residential mortgages that it structured and sold as mortgage-backed securities.  

In May of 2011, Morgan Stanley lost its bid to have the case thrown out, even at a time when similar cases had been dismissed in the early stages of litigation. The settlement was finalized in mid-December.

Please follow the links below for media coverage of this case.

Reuters, December 14, 2011
Morgan Stanley and MBIA End Dispute Over Insurance

Wall Street Journal, December 14, 2011
Morgan Stanley Bites the Bullet on MBIA Pact

New York Times, December 14, 2011
Morgan Stanley Has More to Do

American Lawyer, December 13, 2011
MBIA, Morgan Stanley Reach Accord in Multibillion-Dollar Credit Crisis Showdown

Reuters, May 30, 2011
Morgan Stanley Loses Bid To Toss MBIA Lawsuit

The American Lawyer, May 27, 2011
MBIA and Boies Schiller Move Forward with Fraud Suit Against Morgan Stanley Over Mortgage-Backed Securities

Reuters, May 27, 2011
Morgan Stanley loses bid to toss MBIA lawsuit

Related Lawyers: Robin A. Henry, Jeremy Vest,