Morgan Stanley Unit Dodges Loan Modification Suit

Law360, New York (August 23, 2011, 4:32 PM EDT) -- A California federal judge on Monday dismissed a putative class action accusing a Morgan Stanley unit of denying new terms to homeowners in a loan modification program because the suit failed to show that every condition required to permanently alter mortgages had been met.

U.S. District Judge Richard Seeborg dismissed named plaintiff Marie Gaudin's suit alleging that Saxon Mortgage Services Inc. falsely promised homeowners an opportunity to beat foreclosures under a loan modification program, only to deny them a permanent change.

While Gaudin's complaint alleged that...
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