Morgan Stanley resolves securities lawsuit

Morgan Stanley building

Morgan Stanley has agreed to pay $95m to resolve a lawsuit accusing the Wall Street bank of misleading investors in mortgage-backed securities in the run up to the 2008 financial crisis.

Reuters reports that the settlement, disclosed in court papers filed Monday in New York federal court, follows years of litigation by investors over allegedly false and misleading statements over the soured securities.

The deal stemmed from a lawsuit pursued by the Public Employees' Retirement System of Mississippi (MissPERS) and the West Virginia Investment Management Board.

The plaintiffs accused Morgan Stanley of violating U.S. securities law in packaging and selling mortgage backed securities in 13 offerings in 2006 and 16 offerings in 2007.

To access the complete Reuters article hit the link below:

Morgan Stanley to pay $95 million in U.S. mortgage-debt settlement

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