Morgan Stanley To Pay $102M In Mass. Subprime Suit

Law360, New York (June 24, 2010, 6:58 PM EDT) -- Morgan Stanley & Co. Inc. has agreed to pay $102 million to settle claims by Massachusetts Attorney General Martha Coakley that it engaged in unfair lending practices for subprime loans in the state.

The settlement agreement, filed Thursday in Suffolk County, Mass., Superior Court, includes $58 million to be paid to more than 1,000 Massachusetts homeowners, $23 million to the state's pension fund for investment losses and $19.5 million to the state's general fund. It also requires the company to change its business practices.

Coakley alleged...
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