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

12.28.2011

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
http://www.nytimes.com/2011/12/14/business/morgan-stanley-and...

Wall Street Journal, December 14, 2011
Morgan Stanley Bites the Bullet on MBIA Pact
http://online.wsj.com/article/SB10001424052970204336104577096...

New York Times, December 14, 2011
Morgan Stanley Has More to Do
http://www.nytimes.com/2011/12/14/business/morgan-stanley-has...

American Lawyer, December 13, 2011
MBIA, Morgan Stanley Reach Accord in Multibillion-Dollar Credit Crisis Showdown
http://www.law.com/jsp/tal/digestTAL.jsp?id=1202535460115

Reuters, May 30, 2011
Morgan Stanley Loses Bid To Toss MBIA Lawsuit
http://www.insurancebroadcasting.com/news/Morgan-Stanley-MBIA...

The American Lawyer, May 27, 2011
MBIA and Boies Schiller Move Forward with Fraud Suit Against Morgan Stanley Over Mortgage-Backed Securities
http://www.law.com/jsp/tal/PubArticleTAL.jsp?id=1202495541851...

Reuters, May 27, 2011
Morgan Stanley loses bid to toss MBIA lawsuit
http://www.chicagotribune.com/business/yourmoney/sns-rt-us-mo...

Related Lawyers: Robin A. Henry, Jeremy Vest,